Wedoany.com Report-Apr. 15, Brazil is poised to raise its mandatory biodiesel blend in diesel from 14% to 15%, according to Daniel Amaral, director of economics and regulatory affairs at Abiove, an oilseed industry group. Speaking on Monday at an event in Sao Paulo, Amaral noted that declining vegetable oil prices have created favorable conditions for this adjustment.
A drone image shows a unit of Bianchini, an company that produces biodiesel and vegetable oil, in the city of Canoas, Rio Grande do Sul, Brazil March 26, 2025.
In February, Brazil’s national energy council opted to maintain the blend at 14% due to concerns that a higher blend might increase food prices. This decision came as inflation, measured at 5.48% for the 12 months ending in March, exceeded the central bank’s 3% target. Last year, rising vegetable oil prices added pressure on efforts to manage inflation.
Amaral highlighted that vegetable oil prices are now decreasing due to improved supply and demand dynamics. This trend supports the industry’s readiness to implement the 15% blend. “The conditions are already in place for this, the industry has capacity, we are increasing crushing, all of this is already in place,” he said on the sidelines of the Abiove event. “The decision now depends on the government, and we hope it happens as quickly as possible.”
The Ministry of Mines and Energy was unavailable for comment outside regular office hours.
Amaral emphasized that increasing biodiesel demand would not raise consumer prices. He attributed earlier vegetable oil price hikes to external factors, such as foreign exchange rates and challenges with Southeast Asia’s palm harvest. “These were issues outside Brazil,” he said.
Following the February decision to keep the blend at 14%, agribusiness consultancy StoneX revised its biodiesel sales growth forecast, reducing it from 1.2 million cubic meters to 600,000 cubic meters.
