Brazilian government sets up new purchase option feature for biodiesel stocks

In Brazil, on April 8, the Ministry of Mines and Energy (MME) published an ordinance in the Official Gazette establishing a new model for strategic stocks of biodiesel in the country. A new feature is the “purchase option” method of acquisition which is used in other sectors. With this, buyers of biodiesel (essentially, Petrobras) contract the right to take the product when necessary, at any time, and plants are required to conclude the business at the agreed price.