Brazil decides to maintain a 10% blend of biodiesel in diesel for the entire year of 2022

The National Energy Policy Council (CNPE), in advice to the President of the Republic, decided this Monday (29) to maintain the 10% content of biodiesel no diesel for the full year of 2022, citing higher prices for the biofuel feedstock.

The measure took into account the principles of the National Energy Policy, particularly those contained in item III of article 1 of Law No. 9,478/1997, with regard to protecting the interests of the consumer regarding the price, quality and offer of products, according to a note from Ministry of Mines and Energy.

“The decision taken this Monday is in line with the interests of society, reconciling measures to contain the price of diesel with the maintenance of the National Biofuels Policy, providing predictability, transparency, legal and regulatory security to the sector,” stated the Ministry.

In January, the new biodiesel commercialization model foreseen by the CNPE Resolution will start, with the end of the biodiesel acquisition model through auctions.

“The new model will continue to be permanently monitored by the CNPE and, if necessary, timely measures can be adopted, in order to safeguard the National Energy Policy and the National Biofuels Policy,” said the ministry.

Biodiesel was introduced on a compulsory basis in the matrix of fuels in 2008. Since then, the mixture in road diesel oil has gradually grown from 2% (B2) to 13% (B13) this year.

But throughout the year, the mixture was reduced, with the government citing the high cost of the raw material – soy oil accounts for more than 70% of the production of the biofuel.

The last auction, to serve the market in the last two months of the year, has already been held for a mandatory 10% mix. Still, the price went up.

The CNPE resolution frustrates members of the soy industry, who advocated a gradual increase in the mixture of up to 15% in 2023.

Members of the oil industry and distributors have stated that the increase in the mixture content seen in recent years demands greater rigor in the required parameters, due to the peculiar characteristics of the product. A public consultation was opened by the regulator. ANP to discuss the quality.