The Paraguayan productive sector is on alert following the government's announcement to increase the percentage of biodiesel in the blend with Type III diesel, the common fuel. The measure, announced last Thursday, generated immediate concern among rural producers, who fear heavy economic and technical losses.
Héctor Cristaldo, president of the Union of Production Guilds (UGP), stated that the change was learned through the press, creating a scenario of "great cloudiness and confusion." He emphasized that producers have enormous capital invested in agricultural machinery and that exceeding the blend limits recommended by engine manufacturers directly threatens these investments.
As an alternative to protect the engines and not void the warranties, farmers could switch to premium diesel, which has no blend. However, Cristaldo estimates this would represent a significant additional cost, between 1,870 and 2,790 guaranis per liter. "If you buy 10,000 liters of diesel, it will cost almost 28 million guaranis more," he exemplified.
The guild leader also issued a warning based on the experience of Brazil, where the blend has already reached 15%. "They are sending us very complicated information. They say a gelatin forms in the filters, the tractor loses power, and everything needs to be replaced," he reported. He explained that biodiesel is hygroscopic, absorbing moisture from the air, which poses a danger for producers who store fuel in their own tanks.
The implementation of the measure at the peak of the corn harvest and on the eve of the 2026/2027 soybean planting is seen as especially concerning. The situation is worsened by the forecast of a complicated year due to the El Niño phenomenon, which is expected to shorten planting windows. Cristaldo warned that mechanical problems could cause significant losses. "If we lose just 10% of the estimated soybean production, it would be 1.25 million fewer tons, a loss of about 500 million dollars in foreign exchange for the country," he calculated.
Despite the adverse scenario, Cristaldo indicated that the Ministry of Industry and Commerce (MIC) has shown itself to be open to dialogue. He stated that there is an expectation to resolve the situation but insisted on the need to respect the technical recommendations of manufacturers to avoid damage to the engine of the national economy.