In Brazil, Platts reports the spread between imported diesel A and domestic biodiesel has narrowed enough to potentially increase demand for the bio-based alternative. A narrower spread could entice the government to increase the blending mandate from the current 12%. The mandate is meant to increase 1% per year until reaching 15% in 2026. Although biodiesel prices are 10% higher on the month, they are 27% lower on the year. Petrobras announced in May that it would no longer follow the Import Price Parity policy.
Category: Fuels
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