Vietnam Ministry Orders E10 Biofuel Enforcement by June 2026; Petrolimex, PVOIL Lead Switch

Overview

The Ministry of Industry and Trade (MOIT) has issued a directive to enforce the E10 biofuel blending roadmap, requiring all retail gas stations in Vietnam to complete the transition to E10 gasoline by June 1, 2026. Petrolimex (PLX) and PVOIL (OIL), the two largest fuel distributors, are already implementing the switch across their networks, with Petrolimex reporting 80% station coverage by mid-May. The move aims to standardize biofuel adoption and ensure supply stability.

Key Facts

• MOIT’s Domestic Market Management Department mandates that all gas stations must convert to E10 by June 1, 2026.
• Petrolimex (PLX) had converted approximately 80% of its stations by May 15, targeting full conversion by May 20.
• PVOIL (OIL) began phasing out RON95-III at its retail stations on May 15 and is now selling E10.
• Petrolimex reported E10 sales volume of 3,000-4,000 cubic meters per day recently, up about 40% from initial pilot levels.
• PVOIL’s E10 blending capacity is nearly 4 million cubic meters per year, ready to supply the network.
• Market surveillance forces will conduct inspections starting June 1, with penalties for non-compliance, hoarding, or price manipulation.
• PLX closed at VND 45,150 (+6.99%) and OIL at VND 17,000 (+9.68%) on May 18, 2026, reflecting positive market reaction.

What Happened

The Domestic Market Management Department under MOIT issued a directive to provincial and municipal authorities to enforce the E10 biofuel blending roadmap. The directive requires all retail gas stations to complete technical upgrades (tanks, pumps) and switch to selling E10 gasoline by June 1, 2026. Market surveillance teams will conduct inspections from that date, with strict penalties for violations including hoarding, supply disruption, or unauthorized price increases. Local officials are held personally responsible for enforcement failures.

Petrolimex confirmed that its stations began selling E10 in late April, reaching 80% coverage by May 15, and expects full conversion by May 20. The company noted that during an eight-month pilot in Ho Chi Minh City, no quality complaints were received, and sales volume increased by 40% from initial levels. PVOIL started phasing out RON95-III at its retail stations on May 15 and is now selling E10, with blending capacity of nearly 4 million cubic meters per year.

Market Context

Both PLX (listed on HOSE) and OIL (listed on HOSE) saw significant price gains on May 18, 2026, with PLX up 6.99% to VND 45,150 and OIL up 9.68% to VND 17,000, on heavy trading volumes of 11.4 million and 9.0 million shares, respectively. The rally reflects investor optimism about the mandated biofuel switch, which could boost fuel sales volumes and margins for the dominant distributors. The broader energy sector has been supported by stable crude oil prices and government policies promoting biofuel adoption.

Strategic Significance

The E10 mandate represents a structural shift in Vietnam’s fuel retail market, favoring large distributors like Petrolimex and PVOIL that have the infrastructure and blending capacity to comply quickly. Smaller operators may face cost pressures from required upgrades, potentially accelerating market consolidation. For PLX and OIL, the transition could drive higher throughput volumes and improve margins if E10 pricing remains competitive. The government’s strict enforcement timeline reduces regulatory uncertainty and supports long-term demand for biofuel blends.

What to Watch

• Completion of Petrolimex’s full station conversion by May 20 and PVOIL’s rollout progress.
• Q2 2026 earnings reports from PLX and OIL for evidence of volume and margin impact from E10 sales.
• Any adjustments to E10 retail pricing relative to conventional gasoline, which could affect consumer adoption.
• Market surveillance outcomes after June 1, including any fines or supply disruptions.
• Potential policy updates on blending ratios (e.g., E20) or expansion of biofuel mandates to other fuel types.