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President approves mixture of 10% biodiesel in diesel oil

Mixture content is valid for the entire year of 2022
Andreia Verdélio – Repórter da Agência Brasil
Published on 18/12/2021 - 16:00
Brasília
Diesel, bomba de combustível
© Arquivo/Agência Brasil

President Jair Bolsonaro approved a resolution of the National Energy Policy Council (CNPE) that establishes the mandatory blending content of biodiesel in fossil diesel oil at 10% for the year 2022. The decision was taken by the CNPE on November 29 and the approval presidential press release published today (17) in the Official Gazette of the Union .

According to the Ministry of Mines and Energy (MME), who chairs the council, the decision aims to protect the interests of consumers in terms of price, quality and product offer.

The government estimate is that the percentage of mandatory addition of biodiesel to diesel oil should avoid, on average, a price increase of R$ 0.12 next year, in a scenario of increase in commodities, such as soybeans, in the Brazilian and international market, and currency devaluation. Soy is the main raw material for Brazilian biodiesel, with about 71% in its composition. The rest comes from beef tallow and other oils.

According to the MME, through legislation, the CNPE can increase this content up to 15% or reduce it up to 6%, motivated by the public interest. In October, the collegiate had already reduced the percentage from 13% to 10% , given the rise in prices in the fuel market.

In a statement released at the beginning of the month, the MME explained that biodiesel maintained average prices throughout 2021, equivalent to twice the price of diesel A, which comes exclusively from petroleum.

"Such price difference, when combined with high percentages of biodiesel in the mixture, has a strong potential to impact the country's economy, given the relevance of the road modal, with direct effects on the increase in inflation [prices for freight and transported products] ”, says the MME.

“Furthermore, based on the best information available, even if there is a super harvest in the world for soybeans, there is no expectation of a significant drop in the price of the commodity on the international market, to the point of changing the high level of biodiesel prices”, completed the folder.

The decision, according to the CNPE, reconciles measures to contain the price of diesel, but does not compromise the maintenance of the National Biofuels Policy (RenovaBio) . In force since 2017, the policy deals with the sustainable expansion of the production and use of biodiesel, aiming at regional development, social inclusion of small producers and reduction of greenhouse gas emissions.

As of January 1st, the new biodiesel marketing model will also start, with the possibility of direct contracting between the input producer and the fuel distributor. The model was defined by the National Agency for Petroleum, Natural Gas and Biofuels (ANP) to replace public auctions and aims to reduce prices in the chain to the final consumer.

“The market 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”, highlighted the MME.

Text translated using artificial intelligence.