Brazil may postpone its next increase in mandatory biodiesel blending, adding uncertainty to the country’s biofuel expansion plans. A senior official from the Ministry of Mines and Energy said in early October that Brazil is unlikely to meet the government’s March 2026 deadline to raise the biodiesel blend in diesel from 15% to 16%. Marlon Araújo Arraes, the ministry’s biofuels director, told an industry event in São Paulo that the government does not have enough time to finalize the technical studies needed for the next phase.

Under Brazil’s fuel legislation, the biodiesel mandate is supposed to rise by one percentage point each year, potentially reaching 20% by 2030. However, without a completed technical report, the government cannot approve the new stage of the program.

A delay would primarily impact the soybean oil sector, as more than 75% of Brazil’s biodiesel is produced from soybean oil. Lower-than-expected biodiesel demand could weaken consumption forecasts and affect market planning for both biodiesel producers and oilseed processors.