March 4, 2024

The government approves a gradual increase in diesel. understand why

The Federal Government has decided to gradually increase the mandatory blending ratio of biodiesel into petroleum diesel oil. The idea is to raise this mandatory rate from the current 10% to 12% from April. In practice, this decision should increase the cost of fuel by R$0.01 per liter in the coming weeks.

The decision in question was taken by the National Council for Energy Policy (CNPE), at a meeting attended by President Luiz Inacio Lula da Silva (Workers’ Party). This group is responsible for advising the head of state in formulating the country’s energy policy.

Today, the mandatory addition of biodiesel to fuel is about 10%, a level lower than the percentage specified in the so-called National Biofuel Policy. This mandatory rate was 13%, but the government of former President Jair Bolsonaro (PL) decided to lower it to 10%.

In 2021, the downgrade option was made at a time when fuel prices, especially diesel, were skyrocketing. The economic team estimated that lowering the mandatory rate to 10% could limit the price that reaches the consumer. Lula’s government, in turn, decided to maintain this policy until March.

Now, a new timeline is taking shape, with prices always going up a bit more each year:

  • 12% in April 2023;
  • 13% in April 2024;
  • 14% in April 2025;
  • 15% in April 2026.

consumer effect

But after all, what real impact could this new decision have on the driver’s pocketbook? Minister of Mines and Energy Alexander Silvera spoke on this subject.

Silvera realized that this decision should naturally make fuel more affordable. However, he said, the increase will not be felt, as each year the price of a liter of diesel will increase by only R$0.01 as a result of the measure.

“It is important to note that studies have been carried out and the impact is about 1 percent, and it cannot exceed that, for every 1 percent in the composition of biodiesel,” said the minister.

Diesel should become more affordable with a new environmental measure. Photo: Freepick

“All the technical studies have been done in the sense that an increase up to B15 is an increase that already exists in many countries of the world, and its use has already been moderated.”

From an environmental point of view, analysts claim that there is a plus point in the scale. Research shows that biodiesel is less polluting than diesel, so the higher the proportion of biodiesel, the less impact emissions will have on the environment.

fuel price

The new action taken by the federal government It occurs in the context of rising prices for other fuels, such as gasoline and ethanol.

Since March 1st, the government has decided to partially relink fuel to federal taxes. With this decision, citizens have already begun to feel the high prices of gasoline and ethanol at the gas station.

Moreover, it is possible that new increases for these fuels will already be prepared for the coming months. Allies of the Ministry of Finance acknowledged the possibility of applying a new increase in the price of a liter, starting next July.