Vietnam Mandates E10 Gasoline Nationwide: Impact on PLX and OIL

Overview

Vietnam’s Ministry of Industry and Trade (MOIT) has mandated that all unleaded gasoline must be blended with ethanol to become E10 nationwide, effective June 1, 2026. The regulation, issued under Circular 50/2025, requires Petrolimex (PLX) and PVOIL (OIL) to sell E10 at all retail stations, while E5 RON92 remains available until end-2030. Both distributors completed system conversions in late May, positioning them for the transition.

Key Facts

• MOIT Circular 50/2025 mandates E10 for all unleaded gasoline nationwide from June 1, 2026.
• E5 RON92 will continue to be sold until December 31, 2030.
• Petrolimex (PLX) began selling E10 across its entire network on May 25, 2026.
• PVOIL (OIL) started E10 sales in mid-May 2026 at over 1,000 retail stations.
• Vietnam first introduced E5 RON92 nationwide in 2018; E10 was piloted in August 2025.
• Over 60 countries globally use biofuel gasoline, with many adopting E10 as standard.
• MOIT states no scientific evidence has been found that E5 or E10 causes widespread engine damage.

What Happened

Vietnam’s Ministry of Industry and Trade has implemented a nationwide mandate requiring all unleaded gasoline to be blended with ethanol to produce E10, effective June 1, 2026. The regulation, outlined in Circular 50/2025, replaces previously common grades such as RON95-V and RON95-III with E10 biofuel. E5 RON92 will remain available until December 31, 2030, providing a transitional option for consumers.

Major distributors Petrolimex (PLX) and PVOIL (OIL) completed retail system conversions ahead of the deadline. Petrolimex began E10 sales across its entire network on May 25, while PVOIL launched at over 1,000 stations from mid-May. The move follows a pilot program in August 2025 and aligns with Vietnam’s long-standing biofuel roadmap, which began with E5 nationwide in 2018.

Market Context

On May 31, 2026, PLX closed at VND 41,000 (+3.93%) on volume of 4.6 million shares on HOSE, while OIL closed at VND 15,100 (+2.03%) on volume of 2.2 million shares on HOSE. The positive price action reflects market anticipation of the E10 mandate, which could drive higher ethanol procurement and blending volumes. Both stocks have been supported by stable oil prices and government policy direction. The sector remains sensitive to global crude oil trends and domestic fuel demand.

Strategic Significance

The E10 mandate reinforces Vietnam’s commitment to reducing greenhouse gas emissions and decreasing reliance on fossil fuels, in line with global biofuel trends. For PLX and OIL, the transition requires investment in blending infrastructure and ethanol supply chains, but also opens opportunities for higher-margin biofuel sales. The retention of E5 until 2030 provides a buffer for consumer adaptation. Long-term, the policy could reduce import dependence on refined gasoline, as ethanol is domestically produced from cassava and sugarcane. However, operational risks include potential engine compatibility issues with older vehicles and consumer resistance.

What to Watch

• Q2 2026 earnings reports from PLX and OIL, expected in August, for margin impact from E10 blending costs.
• Ethanol supply agreements and pricing dynamics, as domestic production may need to scale up.
• Consumer adoption rates and any reported engine issues, which could trigger regulatory adjustments.
• MOIT updates on E5 phase-out timeline or potential extension beyond 2030.
• Global crude oil price movements, which affect overall fuel margins for PLX and OIL.