The mandate for biodiesel blending in Brazil has been lowered from 13% to 10% until August, S&P Global Platts (S&P) reported on 14 May.
Brazil's Mines and Energy Ministry (MME) announced on 13 May that the biodiesel blending mandate would be lowered for July and August, according to the report.
A number of producers had been expecting a 13% blending mandate to resume, S&P said.
The drop in the biodiesel blending mandate was mainly due to surging biodiesel costs, according to the report.
In Brazil, regulation stipulated that biofuel could only be traded within the auction process, which took place bi-monthly, S&P said.
Brazil was aiming to increase biodiesel blending in the country to 15% in March 2023, the report said.