A severe dry season is gripping Vietnam’s Central Highlands, the nation’s key coffee and pepper producing region. With 185,000 hectares of coffee in Đắk Lắk alone—about 40% of Vietnam’s total area—farmers are struggling to keep crops alive as irrigation water sources dry up.
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Y Dham Enuol, Standing Vice Chairman of the Đắk Lắk People’s Committee, warns that a failed coffee harvest could threaten regional socio-economic stability and even national security.
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Some coffee gardens are already wilting as reservoirs run dry, raising fears of a sharp drop in coffee yields if the drought continues.
Exploding Demand for Fuel to Power Irrigation
To save their crops, farmers are running diesel-powered pumps day and night. Although rural electrification has expanded, most areas only have single-phase electricity, insufficient for large-scale irrigation.
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Gia Lai Province reports that 20% of total goods and service turnover comes from petroleum used for irrigation.
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Each coffee tree requires around 2,000 liters of water per season, doubling the diesel consumption for farmers like Nguyen Duc Quynh in Ia Grai District compared to last year.
“This year, the amount of diesel my family uses for irrigation has doubled,” Quynh confirms.
Fuel Suppliers Under Intense Pressure
Major distributors—including Petrolimex, PVOil, the Army Petroleum Company, Thanh Le Company, and Petec—are racing to meet the spike in demand. Petrolimex holds the largest market share (55–70% depending on province) and plays a critical role in maintaining supply.
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Vu Huy Tri, Chairman of the Northern Central Highlands Petroleum Company (Petrolimex subsidiary), explains:
“Normally we sell 800–850 m³ of fuel per day, but during peak season it rises to 1,000–1,200 m³—a challenge for a market so far from supply sources.”
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Tran Ngoc Nam, Deputy General Director of Petrolimex, affirms the company’s commitment:
“As the key supplier, Petrolimex is determined to ensure fuel supply under all circumstances—especially for agriculture, the Central Highlands’ core economic sector.”
Despite operating only 15.5% of retail outlets, the Northern Central Highlands Petroleum Company supplies 65% of the Gia Lai market. In Đắk Lắk and Đắk Nông, the Southern Central Highlands Petroleum Company holds around 55% market share.
Securing Supply Amid Crisis
During the 2011 drought, many suppliers left the market, but Petrolimex kept selling fuel—even as staff collapsed from exhaustion. This year, proactive supply management has so far kept the fuel market stable, allowing farmers to access the diesel needed to save coffee and pepper crops despite the prolonged drought.
Coffee & Pepper at Risk: Without consistent irrigation, coffee yields could drop sharply, threatening a key export industry. Petroleum Demand Soars: Fuel for irrigation pumps has surged, with some farmers using twice the diesel compared to previous years. Petrolimex Crucial to Stability: As the dominant supplier, Petrolimex’s logistics and emergency measures are keeping the Central Highlands agriculture sector alive through the drought.