Brazil’s biodiesel blend increases to 12%

Brazil's National Energy Policy Council (CNPE) has increased the Latin American country's mandatory blend of biodiesel to 12% from April.
The council also proposed a gradual increase in the mixture over the next few years, with the level rising to 13% in 2024, 14% in 2025 and 15% in 2026.
The decision meets requests from biodiesel producers, after the biofuel blend in diesel was held at 10% throughout 2022.
The measure is expected to favour mainly the soy industry, since about 65% of the total biodiesel was produced with soy oil last year.
Discontent is likely to arise from sectors linked to road transport, automakers and the fuel sector, which have criticized biodiesel, arguing that a higher mix could cause problems for engines.
Former president Jair Bolsonaro in November 2021 reduced the blend mandate to 10% through 2022 as part of an effort to contain retail diesel prices, and that level that was extended last November through March this year.
CNPE's decision was welcomed by producers and fuel distributors.
Mines and energy minister Alexandre Silveira said the decision “rescues the national program for biodiesel production and use and reinforces the national energy transition strategy”.