Starting this Sunday, July 19, Type III diesel, or common diesel, sold in Paraguay must contain a mandatory biodiesel blend of between 8% and 10% by volume, as established by Resolution No. 472/2026 from the Ministry of Industry and Commerce (MIC). The measure remains in effect despite requests for postponement made by fuel sector entities.
The Distribuidora de Combustibles Asociadas del Paraguay (Dicapar), a guild of fuel distributors, sent a note to Minister Marco Riquelme on July 8, joining a similar request from the Cámara de Distribuidoras Paraguayas de Combustibles (Cadipac), another chamber representing fuel distributors. The guild argues that the regulation was adopted without incorporating prior observations from the sector and would exclusively prioritize the interests of biodiesel producers.
Among the main concerns, Dicapar warns that increasing the biofuel percentage will raise the final price for consumers unless there is a reduction in the Selective Consumption Tax (ISC). Furthermore, it states that many diesel engines, including utility vehicles, agricultural machinery, and older vehicles, were not designed to operate with blends above 7%, which could cause mechanical failures, reduced performance, and issues with factory warranties or insurance coverage.
The sector also questions the available infrastructure, stating that terminals would not have sufficient time to migrate from the current blending method, "Splash Blending," to the in-line blending system necessary for percentages above 5%. The entity requests a 120-day postponement of the resolution's application, the creation of an inter-institutional technical committee, and an update to the list of accredited laboratories for quality control.
As a suggestion, it proposes that the fuel be identified at pumps as "Gasoil S50 B10" to clearly inform the consumer about the biodiesel content. To date, the MIC has maintained its decision, and the new mandatory blend comes into force according to the original schedule.