Ethanol gasoline blend or bio gasoline E5 will be mandatorily used in seven provinces and cities of Vietnam from December and available nationwide from next year-end, according to a plan approved by the Prime Minister.

The seven provinces and cities include Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Can Tho, Quang Ngai and Ba Ria-Vung Tau.

Gasoline E5 is a blend of five percent ethanol and 95 percent traditional gasoline, said Dr. Pham Huu Tuyen from the Hanoi University of Technology.

The bio gasoline helps increase engine power, reduce fuel consumption and exhaust fume emission. It has already been used in developed countries, aiming to protect the environment, he said.

In Vietnam, input costs for production of the gasoline E5 are rather high making it unattractive enough to encourage consumers.

The Ministry of Industry and Trade has proposed the Government to reduce some fuel tariffs and fees, aiming at lower E5 gasoline price and demand stimulation of the new fuel.