The Paraguayan government has reduced the mandatory biodiesel blend in common diesel to 7%, following criticism from productive sectors about the previous increase to a range between 8% and 10%. The measure was formalized this Friday by the Ministry of Industry and Commerce (MIC) through Resolution No. 565.
The new minimum percentage of 7% (B7) is effective from today and will remain until December 31, 2026. Starting January 1, 2027, the minimum will rise to 8% (B8). Enforcement of the rule will only begin after 60 days, granting an adaptation period for the sector.
The decision was made after meetings between the MIC and representatives from the entire fuel supply chain, including producers, distributors, importers, fuel stations, transport companies, and the Union of Production Guilds (UGP). The president of the UGP, Héctor Cristaldo, had already indicated that an agreement for the reduction was in place, arguing that 7% is the maximum limit recommended by vehicle manufacturers to avoid engine damage.
The Vice Minister of Commerce and Services, Alberto Sborovsky, stated that the change is an adjustment in the pace of implementation, not a reversal of the biofuels policy. "This is a government that is a friend to business, that listens, but that also will not reverse course on the industrial development of biofuels," he declared. He assured that the impact on the final price for the consumer will be "absolutely irrelevant."
Massimiliano Corsi, president of the Paraguayan Chamber of Biofuels and Renewable Energy (Biocap), supported the measure, explaining that the period until December is necessary to improve quality controls, storage, and best practices throughout the supply chain. Engineer Miguel Velázquez, a consultant for the sector, added that biodiesel has the property of retaining moisture, which can cause filter clogging and corrosion, justifying the caution with higher percentages in the short term.
The previous resolution (No. 472), which established a blend of 8% to 10%, was repealed. The MIC emphasized that the new rule seeks a balance between economic, quality, and environmental aspects, aligned with Paraguay's international commitments on climate change.