BR Distribuidora asking for ANP to reduce biodiesel sales at next auction by at least 25%

In Brazil, Reuters says BR Distribuidora told the news agency the company has proposed to reduce by a quarter the minimum mandatory percentage of biodiesel withdrawal to be contracted from producers in the next biofuel auction, claiming that it is not possible to predict the consumption of the product in the coming weeks and months due to the impact of the coronavirus.

The idea, according to the largest fuel distributor in the country, is that the distributors are required to remove at least only 70% of the biodiesel contracted in the next auction, which foresees the delivery of the product in the two months of May and June, against 95% currently required, under penalty of payment of a fine.

The next auction was suspended by the regulatory agency ANP on Monday, due to requests for changes in rules by agents, such as the one related to the minimum percentage of withdrawal, amid uncertainties related to future demand.