Petrovietnam Oil eyes jet fuel sales

By Phuong Dong June 8, 2020 | 09:15 pm PT

Aircraft seen at Noi Bai International Airport in Hanoi. Photo by Shutterstock/mark stephens photography.

Petrovietnam Oil wants to sell jet fuel to serve the rising demand for air travel as new airlines seek permission to fly.

Cao Hoai Duong, CEO of the state-owned oil distribution firm, said at the annual general meeting on Monday that the company is considering adding Jet A1 fuel to its product portfolio.

There are only two suppliers of jet fuel in Vietnam -- Skypec, which sells mostly to Vietnam Airlines and foreign carriers, and Petrolimex Aviation, which serves Vietjet Air and Bamboo Airways – and so there is room for a new company in the market.

Demand for jet fuel is expected to rise since new airlines are applying for licenses, he said.

Tourism firm Vietravel has received government approval for its Vietravel Airlines and is seeking an air operator certificate, while Kite Air of hospitality group Thien Minh has applied for a license.

Petrovietnam Oil and Binh Son Refining and Petrochemical Jsc, the largest producer of Jet A1 fuel in Vietnam, are sister companies and subsidiaries of Petrovietnam.

Duong also said the company’s distribution network around the country makes it convenient to transport fuel to airports.

The company reported a loss of VND537 billion ($23 million) for the first quarter due to plummeting oil prices. Production is expected to fall by 10-18 percent this year.