Vietnam is finding it difficult to sell 102 million liters of RON92, an out-of-date gasoline the country wants to replace with more RON95 in the national reserve.
To obtain more space and money for today’s most common and popular gasoline RON95, Vietnam needs to sell its reserves of the cheaper RON92 fuel, which was supposed to have been auctioned off last year.
But Vietnamese ministries could not agree on a set starting price for the fuel so the auction never happened.
RON 92 is a low-power fuel that is now mainly used to make biofuel.
But the Ministry of Industry and Trade has reported that selling such a large volume of the gasoline is difficult because few local wholesalers currently need biofuel.
Vietnam has not had to release fuels from the national reserve for emergencies in five years, but the Ministry of Industry has announced that bulking up the nation’s scant resources is a must.
According to the National Reserve Law, petroleum is a strategic reserve commodity.
But the reality on the ground is that Vietnam’s average total reserves over the last five years has been just over 370,000 cubic meters a year, equivalent to only 6.5 days of consumption and 9 days of net imports.
Vietnam’s national petroleum reserves generally total from around one-third to one-eighth of other countries’.