Brazil’s ANP Reduces Biodiesel-Diesel Blend to 10% on Pandemic

Brazil, Business News/Analysis, Marketing/Market Forces and Sales, Opinions, Policy

June 18, 2020

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by Jeff Fick (S&P Global Platts) Temporary move cuts mandate until June 21; Increase to 12% in effect since March 1; Concerns that coronavirus could affect supplies — Brazil’s National Petroleum Agency, or ANP, temporarily reduced the volume of biodiesel blended with diesel sold at the pump to 10% from 12% for the next five days in an emergency move, the country’s lead regulator for the oil and natural gas industry said Tuesday.

The measure is necessary to provide continuity to national fuel supplies given that biodiesel deliveries projected for the cited period may not be sufficient to meet the 12% Diesel B blend, which is being heavily consumed, despite the actual pandemic,” the ANP said in a statement.

Brazil raised the volume of biodiesel blended with diesel sold at the pump to 12% from 11% on March 1. The increase was part of a broader plan under the government’s RenovaBio biofuels program to boost the biodiesel-diesel blend to 15% by March 2023, with the rises implemented in annual 1-percentage-point increases.

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Diesel powers the tractors in the fields as well as the trucks and trains that ship the harvest to ports for export, so demand rises and follows with the agricultural season.

In addition, much of Brazil’s products are transported via truck.

Biodiesel producers, however, were affected by the pandemic and social-distancing measures despite the relatively rural nature of the work. The ANP, meanwhile, was forced to temporarily stop biodiesel auctions because of social-distancing measures. READ MORE

Brazil temporarily lowers biodiesel content of diesel, given the strong demand from harvest time (MercoPress)

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