HANOI – August 20, 2025 – In a landmark move aimed at accelerating its green energy transition, the Vietnamese government is actively considering a proposal to completely phase out the country's most popular gasoline grade, RON 95, by the beginning of 2026. The plan would see the ubiquitous fuel replaced by E10, a biofuel blend, as the primary high-octane option for consumers nationwide.
The proposal, which is now being circulated for discussion among various ministries and industry stakeholders, is driven by two core national objectives: enhancing environmental protection and strengthening energy security. If enacted, this policy would represent one of the most significant transformations in Vietnam's retail fuel market in decades.
Currently, RON 95 is the standard premium fuel for a vast majority of cars and modern motorbikes in Vietnam, valued for its high-octane rating suitable for modern engines. The proposal suggests making E10—a mixture of 10% bio-ethanol and 90% conventional gasoline—the main replacement. This would be sold alongside the existing lower-grade E5 RON 92 biofuel, effectively making biofuel the national standard.
Environmental and Energy Security Goals
The primary motivation behind the proposed shift is environmental. E10 fuel burns more cleanly than pure petroleum-based gasoline, resulting in lower carbon monoxide and greenhouse gas emissions. Proponents argue that a nationwide mandate for E10 would significantly reduce the transport sector's carbon footprint, helping Vietnam meet its international climate change commitments and improve air quality in its congested cities.
Secondly, the policy is designed to bolster Vietnam's energy security. The ethanol used in E10 is produced from agricultural feedstocks such as cassava and sugarcane, which can be sourced domestically. By increasing the consumption of homegrown biofuels, Vietnam aims to reduce its heavy dependence on imported crude oil and refined petroleum products, making the country less vulnerable to volatile global energy markets and geopolitical disruptions. This could also provide a boost to the domestic agriculture sector.
Potential Challenges and Public Debate
Despite the clear environmental and strategic benefits, the proposal is expected to face considerable debate. Key concerns include:
Vehicle Compatibility: Some consumers, particularly owners of older cars and motorbikes, may have concerns about the compatibility of E10 fuel with their engines, fearing potential long-term damage to fuel lines or components.
Consumer Acceptance: A successful transition will depend on public buy-in. Drivers will need reassurance regarding engine performance, fuel efficiency, and, crucially, the retail price of E10 compared to the familiar RON 95.
Infrastructure and Logistics: Fuel distributors and refineries would need to invest in upgrading their storage and distribution infrastructure to handle the higher ethanol blend exclusively.
The proposal is currently in the consultation stage. Government officials will be gathering feedback from the public, automotive experts, and fuel companies before a final decision is made. A clear roadmap addressing consumer concerns and supporting the industry through the transition will be critical for the policy's success.
