Government reduces biodiesel blend in diesel to 7% until year-end

Paraguay's government has adjusted the mandatory biodiesel blend in diesel fuel, lowering it to 7% effective immediately and extending this rate until December 31, 2024. This move revises a recently implemented regulation that required a biodiesel mix of 8% to 10%.

The Ministry of Industry and Commerce (MIC) issued a resolution detailing the change, which aims to strike a balance between economic considerations, fuel quality, and environmental objectives. The ministry stated that the modification followed analyses of new factors and studies, deeming the adjustment necessary and prudent.

Looking ahead, the regulation specifies that from 2027 onwards, the minimum biodiesel blend for diesel type 3, or its future substitute, will be set at 8%. This decision effectively abrogates a previous resolution from June 2026 that had mandated the higher 8% to 10% blend.

The modification comes after discussions between the government and productive sectors, which had raised concerns about the implementation of the higher biodiesel blend. The MIC had previously suggested that a higher blend should not significantly impact the final price of diesel.