Brazil will fail to reach its 16% biodiesel blending mandate this year

Brazil may not be able to increase the mandatory share of biodiesel in diesel fuel from 15% to 16% by the government’s March 2026 deadline, a spokesperson for the Brazilian Ministry of Mines and Energy said on Monday, according to Reuters.

The government may not have enough time to complete the necessary studies to implement the measure, the ministry noted, adding that the government has yet to prepare the final report required to implement the new phase of the policy.

Brazilian legislation calls for a gradual increase in the share of biodiesel by one percentage point per year, potentially reaching 20% ​​by 2030. The 15% level, which was supposed to become mandatory in March of this year, was only implemented in August, as the government cited inflation concerns.

A possible delay in the deadline would primarily impact the soybean oil industry, as this oilseed is used to produce more than 75% of Brazil’s biodiesel.

Previously, German analysts noted that the price of soybean oil, which is used to produce biodiesel globally, would rise by $100-$150 per ton as early as 2026 due to reduced supplies.

According to OleoScope, on October 6, 2025, the price of soybean oil (FOB Brazil) for October delivery was $1,124.85 per ton, up $4.98 per ton from the previous price of $1,119.87 per ton on October 3, 2025. This is the highest level in a week.

Tags: biofuel, Brazil