Hanoi, March 24 — Amid a global fuel crisis driven by impacts of the still-unpredictable conflict in the Middle East, diversifying supply sources to meet domestic demand is an urgent priority alongside longer-term measures, according to experts.
Vietnam News Agency reported the Vietnam Petroleum Institute's former deputy director Nguyen Hong Minh, whose organisation is an affiliate of Vietnam National Industry-Energy Group (Petrovietnam), as saying that under normal conditions, the country exports part of its domestically produced crude oil while importing crude feedstock for processing at the Dung Quất Refinery in Quảng Ngãi and the Nghi Sơn Refinery in Thanh Hóa.
Since the two refineries came on stream, Vietnam has been able to meet about 70 per cent of its domestic fuel demand, significantly reducing reliance on imported refined products compared with the previous period, with the remainder supplemented through imports from overseas markets.
He said this reflects a common structure in the global energy industry, where many oil-producing countries both export and import crude to optimise refining, diversify supply sources, enhance the flexibility of their refining systems and safeguard energy security.
Since the West Asia conflict disrupted crude and refined fuel supply chains, Petrovietnam has swiftly implemented a range of response measures and moved decisively to implement the Government’s Resolution 36/NQ-CP dated March 6 to secure energy supply for the market.
Petrovietnam has proposed that the government consider halting crude oil exports to prioritise domestic refining demand.
At the same time, it has reviewed all feedstock sources, including crude and intermediate products in inventory from both domestic and imported supply, to map out stable operating plans for refineries in the coming months.
It has also engaged with international partners to secure additional crude supplies and supported Nghi Sơn Refining and Petrochemical LLC (NSRP) in signing new crude purchase contracts to sustain operations at the Nghi Son Refinery.
Meanwhile, Binh Son Refining and Petrochemical JSC, another subsidiary of Petrovietnam, is running the Dung Quat Refinery at above 100 per cent capacity, helping boost fuel supply and standing ready to support NSRP if needed.
In addition, by the end of March, the Dung Quất Refinery is expected to receive fuel ethanol from the Central Biofuels JSC for blending into E10 RON95 gasoline, further lifting domestic output.
Customs data show that in the first 15 days of March, Vietnam imported more than 533,000 tonnes of petroleum products, up 41.4 per cent in volume, with import value surging 89.2 per cent amid global energy price volatility.
Alongside refined fuel, crude imports have also been maintained to secure feedstock for the two refineries.
Thanks to diversified supply sources, proactive import, and flexible use of the fuel price stabilisation fund, the domestic fuel market is now largely meeting demand, helping curb price hikes.
Meanwhile, the Vietnam National Petroleum Group and Petrovietnam Oil Corporation have proactively purchased ethanol from domestic plants and signed import contracts with the US and Brazil, where supply is abundant and unaffected by the Middle East conflict, to secure feedstock for E10 RON95 biofuel blending.
Together controlling nearly 70 per cent of Vietnam’s fuel market, the two firms have also upgraded storage tank systems and increased E10 RON95 blending capacity to accelerate the transition from conventional gasoline to biofuel.
The Vietnam Petroleum Association's chairman Bùi Ngọc Bảo said that although importing ethanol from the United States or Brazil is relatively straightforward, the long transit distances remain a challenge.
He suggested that the Industry and Trade Ministry swiftly adopt favourable policies enabling foreign suppliers to ship goods to Vietnam and store fuel or ethanol in bonded warehouses without paying the 1 per cent contractor tax when transferring products out of the bonded zone.
According to energy expert Đào Nhật Đình, over the long term, Vietnam needs to build an independent national reserve system, separate from commercial storage, gradually scaling fuel and crude reserves to levels approaching international standards to create a “safety buffer” for the economy against energy shocks.
The Centre for Energy and Green Growth Research's director Hà Đăng Sơn said Petrovietnam should be given leeway to expand oil and gas exploration and production activities, while taking a more proactive role in signing long-term crude import contracts to secure stable feedstock for domestic refineries.
He noted that a clear coordination mechanism between the state and enterprises is needed to ensure energy security, with Petrovietnam positioned as the central player in the value chain, from exploration and reserves to refining and fuel supply.
