The government assesses that there is no expectation of a significant drop in the price of soybeans on the international market, even if there is a global super harvest of the commodity to the point of changing the “high price level of biodiesel”, said the Ministry of Mines and Energy on Thursday. fair (2), once again justifying its decision to reduce the biofuel mixture scheduled for 2022.
Soy, the main item in Brazilian agribusiness, is also a raw material for around 75% of the biofuel.
In a statement, the Ministry of Mines and Energy responded to the criticism received from the biodiesel sector after announcing earlier this week the decision to maintain the 10% biodiesel content in diesel for the entire year of 2022, citing high values ​​of the product.
“The decision aims to protect the interests of the consumer regarding the price, quality and offer of the products,” said the folder on Thursday. “Biodiesel maintained average prices throughout 2021, equivalent to twice the price of diesel A (coming exclusively from petroleum).”
“Such price difference, when combined with high percentages of biodiesel in the mixture, has a strong potential to impact the country’s economy, given the relevance of the road modal, with direct effects on rising inflation, especially at this time of post-pandemic resumption of the Covid-19.”
In addition, the ministry said that the reduction in the price of diesel would allow a drop in freight prices and, therefore, in all products transported by road.
In a joint statement, members of the biodiesel sector even stated that the measure “destroys the national biodiesel program and gives a signal contrary to the commitments established at COP26”.
On this issue, the ministry stated that there is no contradiction between the commitments assumed by Brazil at COP26 and the maintenance of the B10.
“In the national climate neutrality strategy, presented at COP26, Brazil pledged to use renewables in the diesel cycle, including biodiesel, green diesel and renewable part of diesel from co-processing, on an economic basis,” he said.
“It is important to emphasize that Brazil is one of the countries with the cleanest energy matrix in the world, with 48% renewable, equivalent to more than three times the world average; and that the concept of sustainability encompasses economic, social and environmental aspects, with no target for the achievement of B15 in the national climate neutrality strategy.”
The day before, members of the biodiesel and soy industry said they had not surrendered to the government’s decision and said they believed in a reversal of the measure as soon as President Jair Bolsonaro had all the information about the costs and losses.
The industry argues that it has prepared for a 14% biodiesel blend that would be in effect from March next year and that a reduction in this percentage would cause losses due to investments made and the jobs that would be generated, in addition to diesel import expenses. In addition, they pointed out other impacts for the agribusiness industry.
In the note, the ministry also said that the National Energy Policy Council (CNPE) reaffirms the importance and its commitment to the National Biofuels Policy and that the market will remain permanently monitored.
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