by Gabriel Araújo (NASDAQ/Reuters) The Brazilian government raised the mandatory blend of biodiesel into diesel to 12% from 10%, below this year’s target of 13% in a bid to rein in fuel inflation amid high soybean prices. About 70% of Brazil’s biodiesel is produced from soy oil, prices of which have risen owing to strong demand and tight supply of soybeans.
“The Brazilian biodiesel industry is entirely prepared for delivering the 13% mixture,” Daniel Amaral, chief economist at Brazilian oilseeds lobby Abiove, said in a statement on Tuesday. “Yet raising the blend to 12% is already a positive development as it stimulates soy processing and grain use in Brazil.”
Brazil raises mandatory biodiesel blend to 12%, below expectations
The Brazilian government raised the mandatory blend of biodiesel into diesel to 12% from 10%, below this year’s target of 13% in a bid to rein in fuel inflation amid high soybean prices.
About 70% of Brazil’s biodiesel is produced from soy oil, prices of which have risen owing to strong demand and tight supply of soybeans.
“The Brazilian biodiesel industry is entirely prepared for delivering the 13% mixture,” Daniel Amaral, chief economist at Brazilian oilseeds lobby Abiove, said in a statement on Tuesday. “Yet raising the blend to 12% is already a positive development as it stimulates soy processing and grain use in Brazil.”
Brazil raises mandatory biodiesel blend to 12%, below expectations reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
Rio de Janeiro Brazil slashed its signing bonuses and profit-oil guarantees for the sale of the Atapu and Sepia fields now scheduled for December, significantly improving terms to develop the subsalt oil and natural gas deposits amid greater global competition for the oil industry s investment dollars, the Mines and Energy Ministry said April 20.
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Under terms approved by Brazil s National Energy Policy Council, or CNPE, Atapu will be sold for a signing bonus of $721 million and minimum profit-oil guarantee of 5.89%. That was down from a signing bonus of $3.4 billion and minimum profit oil of 26.23% at the previous sale held in November 2019.