On the recent determination of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), to temporarily reduce the mandatory percentage of biodiesel in diesel A, from 12% to 10%, the Brazilian Institute of Oil and Gas (IBP) does the following clarifications to the market:

The reduction in the mixture determined by the ANP, under the direction of the Federal Government, was due to the insufficient supply of B100 (biodiesel) signaled in the most recent product auction (L75) held on August 5, also canceled by the same Resolution. The Minister of Mines and Energy, Bento Albuquerque, acknowledged the imbalance between the demand and the supply of the product and recommended the reduction to remove the risk of diesel shortages in the country.

Speaking last week at the Biodiesel Week event, the Secretary of Oil, Gas and Biofuels, José Mauro Coelho, drew attention to some of the problems with the supply of biodiesel in the last year, the price of which began to take off from diesel A in June 2019 In the last auction, biodiesel was sold at a price 66.7% higher than that of diesel A.

The distribution segment has been continually unfolding to meet market demands, always complying with the guidelines established for the sale of fuels in the country, in order to prioritize the interests of the final consumer. This effort was doubled due to all the market uncertainties generated by the coronavirus pandemic.

For IBP, supplying the Brazilian fuel market is a top priority. In this way, it supports and defends the decision of the Federal Government, which correctly preserves the biodiesel program and guarantees the supply of the Brazilian market.

We also consider the schedule presented by the Government to review the biodiesel auction models to be important, in the sense of greater freedom between agents in the negotiation of the product and in line with the model already adopted by the regulator for other fuels and based on free competition and competition. .