Producers Call for Increased Biodiesel and Ethanol Blends to Combat Rising Fuel Prices

The Brazilian Association of Soybean Producers (Aprosoja Brasil) has urged the federal government to accelerate the schedule for increasing the blend of biodiesel in fossil diesel, currently at 15%, and ethanol in gasoline, presently at 30%. The objective is to reduce dependence on imported fuels amidst rising prices caused by the Russia-Ukraine conflict. The National Energy Policy Council (CNPE) is scheduled to meet this Thursday, May 12th. However, there is currently no forecast for a vote on altering the mandatory blending mandates for biodiesel in diesel and ethanol in gasoline. Last Friday, May 6th, the Confederation of Agriculture and Livestock of Brazil (CNA) requested that the Ministry of Mines and Energy directly raise the biodiesel blending content from 15% to 17%. The ministry did not comment when contacted. In a statement, Aprosoja Brasil expressed “concern about the severity of diesel supply interruptions to rural properties during the peak soybean harvest and second-crop corn cultivation period.” The association stated that such a measure is untimely, directly affects field operations, and jeopardizes the country's productivity and food security. The National Agency of Petroleum, Natural Gas and Biofuels (ANP) reported over the weekend that fuel supply is normal. Nevertheless, there are reports, particularly in Rio Grande do Sul, of diesel shortages or price increases due to the impact of the conflict on global oil prices. Aprosoja issued a warning regarding this situation.