Brazil: Govt could authorize addition of 3 pct biofuel to regular diesel

31 December 2007

Brasilia, Brazil, 31 Dec – The Brazilian government could permit during the coming year the addition of 3 percent biodiesel to normal diesel fuel, the country’s acting energy minister, Nelson Hubner, said Friday.

“We hope to have authorization for a mixture of 3 percent in 2008,” said the minister, recalling that from 1 Jan the addition of 2 percent biofuel is compulsory.

Sale of the fuel will be overseen by the National Petroleum Agency (ANP), which will close gas stations that do not adhere to the new regulations.

Hubner said there is no risk of fuel shortages with the new law, as the possible increase to 3 percent biofuel addition will be optional.

Brazil’s ministry of energy and mining says the country’s biofuel plants have a yearly production capacity of 2.5 billion liters, while demand stands at about 840 million liters per year.

Brazil’s new laws on biofuel addition mean that gas stations will have to sell fuels with 5 percent biodiesel from 2013.

Hubner said the addition of 2 percent biofuel from 1 Jan will benefit Brazil’s balance of payments to the tune of about 900 million reais in the coming year due to a reduction in fuel imports. (macauhub)