Tanks for biodiesel in a factory

BRAZIL (Reuters) – The National Council for Energy Policy (CNPE) is expected to raise the proportion of biodiesel in diesel this Friday, possibly as high as 12% as of April, according to two people familiar with the matter.

The solution responds to manufacturers’ requests after biofuel levels in fossil fuels remained at 10% throughout 2022.

The CNPE, a body made up of several ministers who advise the President of the Republic, meets this Friday with the participation of President Luiz Inácio Lula da Silva. The decision is expected to be made at the meeting.

At the end of 2021, the previous government decided to lower the proportion of the mixture to 10% (previously in the same year it reached 13%), citing consumer protection issues regarding the price, quality and supply of products.

Biodiesel was made mandatory in the Brazilian fuel matrix in 2008. Since then, the blend content of road diesel fuel has gradually increased from 2% (B2) to 13% (B13) in 2021.

The increase in blending should mostly favor the soybean industry, with about 65% of all biodiesel produced using soybean oil in 2022.

On the other hand, there must be dissatisfaction from sectors related to road transport, car assemblers and the fuel sector, who have criticized biodiesel, citing problems with higher blend engines.

According to sources who spoke on condition of anonymity, CNPE should also decide to gradually increase the blend over the coming years, with levels rising to 13% in 2024, 14% in 2025 and 15% in 2026.

A gradual increase in the blend would be a compromise between what was set earlier, when CNPE determined the blend to 15% as early as 2023.

(Lysandre Paraguassu)