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Political pressure revives debate over biodiesel blend increase in Brazil

The debate over increasing the mandatory blending of biodiesel in diesel has returned to the national spotlight in Brazil, amid growing political pressure on the federal government, Click Petroleo Gas reported.

The president of the Parliamentary Front for Biodiesel, Alceu Moreira, said on Thursday in São Paulo that internal resistance within the government could delay the adoption of the B16 blend. The change would raise the biodiesel content in diesel from 15 per cent to 16 per cent, as required by law from March.

Moreira said some government officials were acting to protect the commercial interests of Petrobras, arguing that higher biodiesel use would reduce sales of fossil diesel. His remarks were made during an industry event and reignited broader discussions around energy policy, legal certainty and the expansion of renewable fuels in the country.

Under the current legal schedule, the increase to B16 should already be in place. However, the measure has yet to be formally approved, raising concerns across the biodiesel production chain.

The federal government has said additional studies are needed before increasing biodiesel output. While industry representatives are pressing for immediate implementation, the Ministry of Mines and Energy has signalled a more cautious approach, with officials previously stating that further technical evaluations are required.

Moreira has rejected this argument, saying there is no technical risk involved. Speaking to Reuters, he said vehicles running on B16 would face no issues beyond those already present with B15, adding that the blend could be introduced in March as planned under the law.

The dispute now extends beyond technical concerns to questions of policy direction and market interests. According to Moreira, resistance within the Civil House is linked to economic considerations, as higher biodiesel use would reduce Petrobras’ share of diesel sales.

He also pointed to the growing use of co-processed diesel — fuel produced in refineries with a small renewable component — which is not included in the mandatory blending rules. Moreira alleged that some officials were intervening in the process due to commercial ties with Petrobras.

The Civil House and Petrobras declined to comment on the claims, while the Ministry of Mines and Energy did not provide updates on the status of the decision.

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