The National Petroleum, Natural Gas, and Biofuels Agency (ANP) has denied a request from Brazil’s National Union of Fuel and Lubricant Distribution Companies (Sindicom) to suspend the country’s mandatory biodiesel blend in diesel for 90 days. The decision, announced late on March 27, keeps the blending requirement at 14% (B14) as mandated by the Fuels of the Future law, which aims to gradually increase the percentage to 20% by 2030, reports Fastmarkets.
Sindicom, representing Brazil’s major fuel distributors, had filed the request on March 12, arguing that a temporary suspension was necessary to strengthen inspections and combat fraud in the sector. However, ANP rejected the proposal, citing concerns over supply shortages, increased dependency on imported diesel, and potential negative impacts on engines and consumers.
The decision follows the recent withdrawal of a separate proposal in Brazil’s Congress that would have allowed fuel stations and distributors to sell diesel without any biodiesel blend. The proposal, introduced by Congressman Marcos Pollon, faced strong opposition from the agribusiness and biofuels sectors, leading to its withdrawal just eight days after its submission.
ANP explained that removing the biodiesel mandate would require an additional 2.4 million cubic meters of pure diesel (diesel A) in 2025 to compensate for the missing biodiesel.
“Even with the current 14% blend, Brazilian refineries are not producing enough diesel A to meet total domestic demand,” the agency stated, adding that imported diesel already accounts for 24% of the country’s supply. Increasing imports further would raise external dependency and pose logistical challenges, as sourcing and shipping additional diesel could take up to 60 days.
The agency also emphasized that eliminating biodiesel from diesel fuel would reduce its lubricity, increasing the risk of engine damage and financial losses for consumers. Additionally, suspending the mandate would disrupt the biodiesel industry, which has seen significant investment and produced about 9 million cubic meters of fuel in 2024.
ANP reaffirmed that keeping the biodiesel mandate aligns with Brazil’s national biofuels policy (RenovaBio), which promotes expanding biofuel production and its role in the country’s energy matrix.
“Suspending the mandatory blend would undermine the progress made at the national level to strengthen Brazil’s only regulated carbon reduction program currently in full operation,” the agency stated.
In response to concerns about fraud, ANP announced plans to enhance enforcement measures, including acquiring new equipment to detect biodiesel content in diesel samples instantly. The agency is also implementing IT and intelligence solutions and strengthening partnerships with other public agencies to improve oversight.
While Sindicom did not comment on the decision, reports indicate that fuel producers and distributors have agreed to push for stricter enforcement against companies that fail to comply with the blending requirements.
For detailed information and further insights, please refer to BioEnergyTimes.com, which provides the latest news about the Biodiesel Industry
