Mumbai, May 07 (Commoditiescontrol): The National Agency of Petroleum, Natural Gas and Biofuels (ANP) of Brazil has authorized a temporary reduction in the mandatory blending of biofuels with fossil fuels in Rio Grande do Sul. This measure is a response to the severe floods that have impacted over 300 municipalities in the state.
The reduction in the biodiesel blend will be in effect for 30 days. For S10 diesel, the biodiesel requirement has been lowered from 14% to 2% (B2). Blending mandates have been suspended entirely for S500 diesel. In the case of gasoline, the minimum content of anhydrous ethanol has been reduced from 27.5% to 21%.
The ANP made the decision after meeting with representatives from the country’s petroleum product, biofuel, and natural gas industries. The purpose of the meeting was to discuss the logistical challenges caused by the floods. While there is sufficient stock of biofuels to meet demand, transporting the fuels to distributors has become difficult due to damaged roads and bridges.
The state government of Rio Grande do Sul has provided the ANP with a list of viable alternative routes that can be used to transport biodiesel by tanker truck. Biodiesel producers in the state have also assured the ANP that they have sufficient stocks and production capacity to meet demand, even with the use of these alternative routes.
While the reduction in the biodiesel blend is positive news for consumers in Rio Grande do Sul in the short term, it could have negative consequences for the country’s biodiesel industry in the long term. Biodiesel producers have indicated that they are facing challenges due to the floods, and a prolonged reduction in blending mandates could harm the industry.
(By Commoditiescontrol Bureau; +91-9820130172)
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