The Ministry of Energy and Mining Coordination updated the price of biofuels intended for mandatory mixing by law with gasoline and diesel this Tuesday. This measure could result in an adjustment in fuel values at the pumps starting in November, following a 1% average reduction in October due to a decrease in international oil prices.
The minimum purchase price of biodiesel intended for its mandatory mixing with diesel has been set at $1,004,562 per ton. The government regulation established that the payment term for biodiesel cannot exceed 7 calendar days from the date of invoice issuance.
Regarding bioethanol, the minimum purchase price per liter made from sugarcane is set at $670.564, and for corn-based bioethanol at $614.596. The payment term for bioethanol, whether from sugarcane or corn, cannot exceed 30 calendar days from the date of the invoice.
According to the official document, the new established prices are the minimum for trading operations in the domestic market. The energy ministry can change the prices if it finds imbalances between these and the actual production costs or if the prices affect the values of fossil fuel at service stations.
The update of biofuel prices adds pressure to fuels in November, in addition to the increase in taxes on Liquid Fuels and Carbon Dioxide implemented at the end of September. Furthermore, they will be impacted by the monthly devaluation of the dollar and changes in Brent prices. At the beginning of October, there was a rebound in oil prices; however, by the end of the month, it is returning to the values of late September.
