Brazil temporarily suspends biodiesel increase

Photo: Tauan Alencar/MME

Brazil’s National Energy Policy Council (CNPE) temporarily suspended an increase in the country’s biodiesel mandate to 15 percent (B15) Feb. 18.

The 1 percent increase was scheduled to go into effect in March.

As a result, the B14 blend requirement continues to be in force throughout Brazil.

The B14 mandate went into effect in March 2024, as stipulated by the CNPE.

“Food prices are our government’s top priority,” said Alexandre Silveira, Brazil’s minister of mines and energy.

“Considering the need to seek all mechanisms to reduce prices on supermarket shelves, we are maintaining the B14 blend until we see results in the price of food for the population, since a large part of biodiesel production comes from soybeans,” Silveira said.

In addition, the CNPE approved the creation of a joint operation between federal government agencies to combat fraud in the mandatory blending of biodiesel.

The operation, coordinated by the Ministry of Mines and Energy, seeks to improve regulatory and inspection instruments to ensure fair competition in terms of price offerings.

“Unfair competition caused by fraud in mandatory blending discourages investment in biofuel production and compromises the sustainability of the supply chain,” the ministry said.

This, according to MME, can potentially harm and restrict supply and put pressure on the price of commercial diesel fuel.