The Brazil government would not be increasing the local mandatory biodiesel blend to 15% in March as expected but would maintain the current 14% blend, Energy Minister Alexandre Silveira told Reuters.
The bulk of biodiesel in Brazil is produced from the processing of soyabeans into soyabean oil.
Following the announcement, agribusiness consultancy StoneX halved its forecast for the annual increase in Brazilian biodiesel sales, the 18 February report said.
If the blend had increased to 15%, biodiesel sales would have increased by 1.2M m³, bringing total demand in 2025 to 10.2M m³, Reuters wrote.
With the continuation of the 14% blend throughout 2025, annual growth in sales was expected to total 600,000m³, with demand at 9.6m³, StoneX said.
The biodiesel blend would remain at 14% “until further deliberation, which can be taken at any time”, Silveira was quoted as telling reporters after a meeting of the national energy council.
He said the move was necessary due to concerns about food inflation.
According to the Brazilian Association of Vegetable Oil Industries (Abiove), the decision to maintain B14 was based on the price of soyabean oil.
However, the organisation said prices for packaged soyabean oil, as well as biodiesel, were already falling, due to Brazil’s record soyabean harvest.
Abiove said it expected the government to review its decision “as quickly as possible”.
