As of this Monday, the mandatory blending of biodiesel into common diesel (Type III) in Paraguay has taken effect, with a percentage ranging from 8% to 10%. The measure, determined by the Ministry of Industry and Commerce (MIC), primarily aims to incentivize local industrial production of the agricultural-origin fuel.
The Minister of the MIC, Marco Riquelme, assured that the new blend ratio will not cause damage to vehicle engines. He explained that the implementation was gradual, first passing through 3% and then 5%, before reaching the current level. Riquelme stated that the 8% to 10% range was created to encourage negotiation within the private sector, with 8% being the mandatory minimum and the maximum being optional. For context, he mentioned that the mandatory blend is 15% in Brazil and 7.5% in Argentina.
The minister also said he had spoken with the Chamber of Distributors of Automobiles and Machinery (CADAM), which reportedly expressed confidence that an 8% blend would not cause mechanical problems. Riquelme warned, however, of the need for care in the logistics chain, such as avoiding the presence of water in tanker truck tanks, a precaution that applies to any type of fuel.
In response to concerns expressed by productive sectors and importers, the Paraguayan Chamber of Biofuels and Renewable Energy (Biocap) came to the defense of the measure. Massimiliano Corsi, president of Biocap, stated that the decision is not improvised, as it was discussed with authorities for over two years. He countered objections about potential damage to truck or agricultural machinery engines, arguing that the difference between the previously accepted 7% and the new 8% minimum is technically insignificant.
Corsi highlighted that biodiesel acts as a lubricant and has low sulfur content, benefiting the engine. He used the example of the roughly one thousand Paraguayan trucks that refuel daily in Brazil, where the mandatory blend is 15%, to demonstrate technical feasibility. "If Paraguayan trucks refuel there without problems, it shows that the biofuel does not affect the engines," he argued.
Beyond the environmental benefits, Corsi emphasized the economic advantages. According to MIC data, biodiesel costs between 10 and 12 guaranis less per liter compared to petroleum-derived diesel. He also reported that Paraguay produced about 100 million liters of biodiesel last year, with 85 million for the domestic market and 27 million exported to Europe, utilizing the local industry's idle capacity.