Euro 5 emission standards and clean fuel problems

VCN - After 2 years of implementing the roadmap to apply emission standards level 5 (Euro 5) for manufactured, assembled and imported cars and two-wheeled motorbikes (according to Decision 49/ 2011/QD-TTg of the Prime Minister), concerns about clean fuel supply still exist, causing difficulties for both consumers and automobile importers and manufacturers. Using lower-than-standard fuel will not meet the environmental protection requirements and will be costly, wasteful, and affect vehicle quality.
Car buyers must sign a commitment to use the correct fuel that meets level 5 emission standards
Car buyers must sign a commitment to use the correct fuel that meets level 5 emission standards

Difficulty in buying clean fuel

Difficulties in finding clean fuel (ensuring level 5 emission standards) are not new, but are becoming a "hot" topic when some car buyers who placed deposits to buy cars are required to sign a commitment to use the correct DO 0.001S diesel fuel, otherwise the warranty will be denied in the event of a problem.

Logically, there is nothing wrong with this request from the dealer, cars manufactured according to Euro 5 standards must use standard fuel (here A95-V gasoline and DO 0.001S diesel); Otherwise, harmful gases will be released into the environment and will harm the engine, damage the exhaust filter...

However, this is making it "difficult" for buyers because new gas stations only commonly provide E5 A92 gasoline, A95-III gasoline and 0.05 diesel while fuels that meet Euro5 standards such as the A95-V gasoline and especially the 0.001 diesel are very rare

The Government has issued a roadmap to apply Euro 5 emission standards for cars. According to Decision 49/2011/QD-TTg of the Prime Minister issued on September 1, 2011, new manufactured, assembled and imported cars must apply level 5 emission standards (Euro 5) from January 1, 2022. By the end of 2024, all new vehicles must meet Euro 5 emissions standards.

- In the Thai and Indian markets, emissions standards equivalent to Euro 6 are currently applied. According to the roadmap of the Governments of these countries, when the prescribed time comes, they will switch to new, comprehensive emissions standards. All gas stations across the country will simultaneously change, selling only one type of fuel that meets Euro 6 standards (the highest level) and will not sell fuel that only meets Euro 4, 3, 2 standards (the highest level). This country steps from Euro 4 standards to Euro 6

This process aims to is be implemented simultaneously from the Government to fuel suppliers and activities to help change consumer habits.

Long-term use of low standard fuel will clog the catalyst, preventing the combustion of soot in the particulate filter (DPF). In addition, filters will be clogged and the engine may experience problems such as reduced power, vibration and rapid oil aging...

- The common point of car models that meet Euro 5 emission standards is that they are all equipped with OBD emission sensors as well as air filtration devices to reduce the content of polluting particles (PM) and polluting gases (CO, HC, NOx) into the air.

A customer in Phu Tho said that in order to fill DO 0.001S diesel oil, he had to drive about 50 km and it took about 100 km in total in return, which was really a huge obstacle. So he only filled oil that was available at the local gas station without other choices. This is the common situation of many car owners that require Euro 5 standards, especially in the provinces,

Implementing the roadmap to apply emission standards for manufactured, assembled and imported cars and two-wheeled motorbikes (according to Decision 49/2011/QD-TTg of the Prime Minister), in recent times, automobile manufacturing and trading businesses have continuously brought products that meet Euro 5 emission standards to the Vietnamese market.

Talking to a reporter from Customs Magazine, Mr. Ruchik Shah, General Director of Ford Vietnam, expressed the manufacturer's concern and impatience over the fact that it is difficult, even impossible, for customers to buy Ford products due to "clean" fuel requirements.

General Director of Ford Vietnam said that in order to achieve level 5 emission standards, there must be synchronization between the car engine and fuel. Any car model (imported or assembled) that uses substandard fuel will affect engine life. This not only puts car owners at risk of damage, but also makes the goal of reducing net emissions meaningless.

Mr. Ruchik Shah's concern is also a common concern of the Vietnam Automobile Manufacturers Association (VAMA) in many documents sent to authorities, related to the industry's goal of reducing net emissions of Vietnam automobile industry. From June 2020 to August 2021, VAMA sent 3 documents to management agencies related to the exchange of Euro5 fuel supply roadmap, demand forecast as well as allocation of satisfactory fuel distribution stations in big cities and inter-provincial routes, density of gas and oil stations...

The inevitable trend

At COP 26 (26th Conference of the Parties to the United Nations Framework Convention on Climate Change, held in the UK in 2021), Vietnam committed to achieving net zero emissions by 2050. To achieve this goal, the Government has issued a roadmap to apply Euro 5 emission standards for all types of cars, according to Decision 49/2011/QD-TTg of the Prime Minister issued on September 1, 2011, new manufactured, assembled and imported vehicles must apply level 5 (Euro 5) emission standards from January 1, 2022.

Obviously, clean fuel switching is an inevitable global trend that helps improve vehicle performance, protect the environment and contribute to sustainable development. Using fuel that meets Euro 5 emission standards brings many benefits such as: protecting human health; environmental protection; save energy and costs; ensure compliance with legal regulations and enhance national reputation and encourage the development of green technology.

However, as mentioned, currently, fuel that meets Euro5 emission standards (RON 95-V, diesel is DO 0.001S-V) are not available in Vietnam and must be imported. At the same time, because it has not brought high economic efficiency, the number of gasoline and oil stores that meet Euro5 standards is still very small.

According to the Government's roadmap, on May 5, 2023, the Government issued Decision No. 482/QD-TTg approving the adjustment of investment policy for the Company's Dung Quat oil refinery upgrade and expansion project of Binh Son Refining and Petrochemical Joint Stock Company. Accordingly, the project will invest in expanding Dung Quat oil refinery, increasing processing capacity from 148,000 barrels/day to 171,000 barrels/day. The product will meet Euro 5 standards and environmental standards according to the Government's mandatory roadmap. According to the plan, the factory is expected to be put into operation from the first quarter of 2028.

Implementing the roadmap to apply emission standards for manufactured, assembled and imported cars and two-wheeled motorbikes, automobile manufacturing and trading enterprises have continuously launched products that meet Euro 5 emission standards to hit the Vietnamese market.
Implementing the roadmap to apply emission standards for manufactured, assembled and imported cars and two-wheeled motorbikes, automobile manufacturing and trading enterprises have continuously launched products that meet Euro 5 emission standards to hit the Vietnamese market.

Thus, it will take over four more years for Vietnam to be able to produce its own finished products such as gasoline and oil that meet Euro 5 standards. In the meantime, consumers still have only one choice: to use imported gasoline and oil, which are 2-8% more expensive than traditional gasoline and oil.

According to the latest statistics from the Vietnam Petroleum Group (Petrolimex), there are currently about 1,200 stations selling DO 0.001S-V oil, out of 17,000 stations, accounting for about 7%. In particular, in Ho Chi Minh City, there are about 73 stations selling DO 0.001S-V oil out of more than 580 stations, accounting for about 13%. Hanoi only has about 30 stations, out of nearly 500 stations, accounting for about 6%. This reality shows that the auto industry's contribution to efforts and commitment to reducing net emissions will fall into a deadlock with the current state of gasoline supply (meeting Euro5 standards).

Change the habit

To create habits and raise awareness for customers to drive cars using fuel that meets Euro 5 emission standards, many Toyota and Isuzu dealers have asked car dealers (Toyota Fortuner Legender, Isuzu Mu-X... ) to sign a commitment to use the correct type of diesel (0.001) to ensure warranty benefits. Other auto companies (Ford, Mitsubishi...) do not require customers to sign a commitment but recommend that customers use the correct type of fuel.

This move by automobile companies forces customers to pay attention and consider when buying fuel, creating a habit of buying and using the correct fuel according to standards.

Because consumers need to pay attention when new car models (including imported and assembled) from 2022 until now are preparing for the registration cycle (starting from 2022). Vehicles using substandard fuel will be at risk of not meeting emissions standards for circulation. On the other hand, car companies have also been implementing many support activities and accompanying consumers.

Switching to clean fuel is an inevitable global trend that helps improve vehicle performance, protect the environment and contribute to sustainable development. However, to realize the issue of using standard fuel in Vietnam, there needs to be close coordination between the Government, relevant ministries and agencies; automobile manufacturers and distributors as well as consumers.

Mr. Bui Ngoc Bao, Chairman of Vietnam Petroleum Association: There needs to be drastic direction from state management agencies

Regarding the implementation of Euro 5 emission standards in Vietnam, in spite of the currently complete legal basis, there is still a lack of synchronization between policy and implementation, because this issue involves many ministries, branches as well as businesses, consumers.

The Government has issued a roadmap to apply Euro 5 emission standards for cars according to Decision 49/2011/QD-TTg of the Prime Minister. Newly manufactured, assembled and imported vehicles must apply level 5 emissions standards (Euro 5) from January 1, 2022. To enforce regulations, manufactured and imported vehicles must meet level 5 emission standards, and the fuel used in the vehicle must meet the same standards as well.

However, many car owners cannot distinguish the difference between fuel emission levels and mainly pour it out of habit, pouring it where it is convenient, and which type is convenient.

For petroleum businesses, when doing business, they aim to meet all types of vehicles, from old to new, from Euro 2, 3, 4 to 5. Furthermore, high quality fuel will be more expensive than other common fuels, so when customers do not need it or import it, who will buy it?

If this problem is not resolved soon, it will easily lead to a "chicken and egg" story. Although, since the Covid-19 epidemic, the Vietnam Petroleum Association and the Vietnam Automobile Manufacturers Association (VAMA) have worked to organize and implement this issue well, up to now there are still many obstacles.

Therefore, to drastically implement the Prime Minister's Decision, it is necessary to have direction from the state management agency rather than issue the document alone. For communication work, it is necessary to make consumers understand what kind of car it is and what fuel comes with it.

For gasoline agents, when there is a request, they must respond, have an import plan and really focus on propaganda activities for buyers about the type of gasoline suitable for the vehicle engine.

For consumers, it is also necessary to raise awareness about using right fuel for vehicles and they must strictly follow the rules as soon as the policies are issued. These products must be imported because there is demand, there will be supply.

In particular, drastic guidance and direction from state management agencies is needed. For example, the Ministry of Industry and Trade must direct petroleum enterprises on how many % of level 5 standard fuel they must have; The Registry agency must have regulations to check whether exhaust emissions meet the requirements and map out solutions to handle cars using unsuitable fuel type. At the same time, it is necessary to warn of damage when using fuel that is not suitable for the vehicle. For car manufacturers, there is a policy to raise awareness for consumers by stating that vehicles that do not use appropriate fuel do not have a warranty.

Mr. Ruchik Shah. General Director of Ford Vietnam: Actively communicate about using standard fuel

Using appropriate fuel will be good for the longevity of the engine and exhaust treatment system, the vehicle's performance as well as the customer's driving experience. In addition, using clean fuel contributes to protecting the environment, reducing the greenhouse effect, contributing to global efforts to combat climate change while protecting public health and limiting respiratory diseases and cardiovascular.

From 2022, in response to the Government's roadmap for applying level 5 emissions standards (equivalent to Euro 5), all new generation Ford vehicles, including imported and assembled products of Ford Vietnam, have met Euro 5 emission standards. For vehicle models that meet Euro 5 emission standards, customers must use the appropriate fuel to meet level 5 emission standards. Accordingly, 0.001S-V DO oil needs to be must be used for new generation Ford vehicles including Ranger, Raptor, Everest, Transit and Ron 95-V gasoline for new Territory and Explorer models

Ford Vietnam always actively communicates about the use of Euro 5 fuel to customers and coordinates with the dealer system to plan strategic vision, goals and implementation methods to gradually change consumers' fuel usage habits.

Ford has continuously advised customers to use correct fuel standards such as sharing information on Ford Vietnam's official website and social network platforms and directly at dealerships (place standees and banners recommending the use of standard fuel; advice agents and recommend the use of Euro 5 diesel fuel for customers, and guide customers to install and use the Petrolimex application). Moreover, others measures such as affixing fuel warning stickers inside and outside the fuel tank cap on all vehicles sold and putting clear regulations in the warranty book of newly sold vehicles are carried out at the same time.

N. Hà - N. Linh (recorded)

By Nguyen Ha/ Thu Phuong

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