On Wednesday, March 12, the Brazilian Union of Fuel and Lubricant Distribution Companies (Sindicom) submitted a request to the National Agency for Oil, Gas and Biofuels (ANP) to temporarily suspend the obligation to blend 14% of biodiesel in diesel fuel for a period of up to 90 days.Sindicom argues that the recent higher price of biodiesel compared to petroleum-based diesel fuel has led to fraudulent blending practices and that increased regulation is necessary. Sindicom argues that the recent higher price of biodiesel than petroleum-based diesel has led to fraudulent blending practices, hence the need for tighter regulation.
However, the Parliamentary Front for Biodiesel (FPBio) strongly opposed the proposal, calling it an attempt by distributors to “phase out” biodiesel, which could have a serious impact on the production sector. FPBio pointed out that the suspension of blending would result in 10 million tons of soybeans not being sold in the market, which would in turn reduce the supply of soybean meal by 8 million tons and push up feed prices, triggering inflation. The suspension of blending would result in 10 million tons of soybeans not being sold in the market, which would reduce the supply of soybean meal by 8 million tons, pushing up feed prices and causing inflation.
