The government’s proposed plan to suspend A83 gasoline usage is coming into sharp focus.
In the past the Ministry of Industry and Trade (MoIT) was assigned to mull a suitable roadmap to suspend import, production and distribution of non-lead A83 gasoline.
“The decision on halting A83 gasoline circulation also relies on checks on how much A83 gasoline volume remains at production and distribution businesses as well as the time required for consumption, to ensure firms not being hurt by the decision,” said MoIT’s Domestic Market Department head Vo Van Quyen.
“The department is doing its utmost to handle the proposal.”
From the part of businesses, PV Oil is currently the biggest A83 gasoline maker in Vietnam and it sold 293,000cum of the product made itself in 2012.
However, among businesses getting the right to import petroleum products only PV Oil registered to either produce or import for sale of 150,000cu.m of A83 gasoline in 2013.
PV Oil has contemplated a plan to double the production capacity of its hydrocarbon liquid mixture processing plant in southern Ba Ria-Vung Tau province’s Phu My Industrial Park in parallel to bettering the product quality.
Industry experts, however, assumed PV Oil planned to upgrade its condensate plant has bogged down in difficulties.
In reality, turning condensate into A83 gasoline is less costly as the octane rate in condensate is tantamount to that in A83 gasoline. However, several more admixtures would be needed to raise the octane rate to turn condensate into A92 gasoline. If doing so the cost of A92 gasoline will be dearer than current A92 gasoline price.
That was why PV Oil plant upgrading plan still sit on the drawing board until present.
Asked by the VIR about its plan on churn out A92 gasoline through upgrading existing Ba Ria-Vung Tau plant, PV Oil general director Nguyen Xuan Son said the business would stop producing A83 gasoline if the government decided on suspending A83 gasoline circulation.
Saigon Petro general director Dang Vinh Sang said the government’s plan to suspend A83 gasoline circulation would not affect its petroleum business.
“We will stop manufacturing and trading in A83 gasoline if it was proposed by the government.”
Ceasing A83 gasoline circulation was first proposed by relevant government agencies in 2007.