The Brazil government has ruled out an immediate increase in the biodiesel content in diesel fuel, saying more tests are needed before raising the blend beyond the current 15 per cent level, International Valor reported.
In a statement to Valor Econômico, the Ministry of Mines and Energy said studies on blends higher than B15 will be conducted in the first half of the year to assess their technical feasibility.
The ministry said the increase cannot be implemented until the tests are completed, as required under the Future Fuels Law, which mandates safety evaluations before raising the biodiesel share in diesel.
Agribusiness groups have been pressing the government to raise the blend level as a way to secure diesel supplies, especially amid concerns that the ongoing conflict in the Middle East could disrupt global fuel supplies.
Traders told Valor that recent diesel shortages in the country are mainly due to price disputes between fuel distributors and petrol stations, rather than a lack of supply. However, they warned that imports could slow if Petrobras does not raise prices in the coming weeks, which could eventually lead to shortages.
Increasing the biodiesel blend could help strengthen fuel supply and also benefit soybean producers, who are currently harvesting a record crop but facing difficulties exporting to major buyers such as China.
Under the Future Fuels Law, the biodiesel blend is scheduled to rise by one percentage point each year until it reaches 20 per cent by 2030. According to the schedule, the blend should have increased to 16 per cent this month, but it has remained at 15 per cent because earlier tests confirmed that level as the current safety limit.
The ministry said testing is expected to begin in the first half of 2026, although the process still depends on the release of funds and the finalisation of the testing method.
Some experts have also raised concerns about raising the biodiesel share. Olivier Girard, director of Macroinfra, said biodiesel made from certain feedstocks could become heavier and might affect vehicle performance.
Meanwhile, the Brazilian Innovation Agency approved funding in 2025 for laboratories and institutions to conduct part of the tests. However, the transfer of funds to participating institutions is still pending, the ministry said.
Earlier this week, 43 agribusiness organisations linked to the Institute Pensar Agro urged the government to immediately raise the biodiesel blend to 17 per cent.
The Brazilian Association of Biofuel Producers also called for faster testing of the B16 blend. Its president, Jerônimo Goergen, said the government could approve the increase if tests confirm it is safe.
Goergen said the industry supports testing to avoid risks. He added that once the studies begin, approval of the B16 blend could take three to four months.
He also suggested the government could allow a voluntary 17 per cent biodiesel blend. Some companies in Brazil are already using higher biodiesel blends, including up to 100 per cent, in their fleets under special authorisations.
