The central city of Da Nang will officially mandate the sale of biofuel this November, one month ahead of schedule.
The decision was made after a meeting between the city government and the Ministry of Industry and Trade last week.
Starting on November 1, every one of the city's 95 filling stations will have to replace Mogas 92 with a fuel containing 5 percent ethanol, known as E5.
After that day, any filling station which fails to follow the rule will have its business license revoked, according to the city government.
The gas stations will still be allowed to sell Mogas 95 at the same time.
The retail price of E5 will be similar to that of Mogas 92.
The E5 gasoline is produced by the Binh Son Refinery and Petrochemical Limited Company, a subsidiary of Vietnam Oil and Gas Group (PetroVietnam), based in Quang Ngai Province, more than 100 kilometers from Da Nang.
The Binh Son Company owns and operates the Dung Quat Refinery, Vietnam's first oil refinery located in Binh Tri Commune, Binh Son District.
Phung Tan Viet, the deputy mayor of Da Nang, told Tuoi Tre newspaper that the replacement of Mogas 92 by E5 is part of a plan to develop an environmentally-friendly Da Nang.
The government has mandated that, starting in December, E5 will be sold in the five centrally-administered cities of Hanoi, Ho Chi Minh, Hai Phong, Da Nang, and Can Tho, and the provinces of Quang Ngai and Ba Ria-Vung Tau.
Starting in December 2015, it will be the only fuel sold nationwide.
E10 fuel, which contains 10 percent ethanol, will be introduced to the same seven localities starting in December 2016, and become mandatory, nationwide, the following year.
Research has found the biofuel is safe for engines and reduces carbon monoxide and hydrocarbon emissions.
Since the biofuel became commercially available in August 2010, few people have purchased it.