Brazil Reduces Biodiesel Minimum Blend to Offset Price Hike

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Researched by Industrial Info Resources (Sugar Land, Texas)--According to renewablesnow.com, Brazil has reduced the minimum biodiesel blend rate in regular diesel from 13% to 10% for May/June 2021, as a result of an increase in soybean oil prices in both the local and international market. This comes after the National Petroleum Agency (ANP) suspended a biodiesel auction after prices soared by 60% in comparison with the previous auction in February 2021.

The rising cost of the commodity, coupled with an ongoing devaluation of the local currency in relation to the U.S. dollar, has boosted exports and raised prices of locally produced fuel. As a result, the enactment of Resolution No. 4 by the National Council for Energy Policy (CNPE) aims to avoid price hikes for final consumers.

Industrial Info is tracking 26 operational biodiesel plants in Brazil. If you subscribe to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Database, click here for a list.

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