By Brazil Stock Guide – Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP) approved a 24-month restriction on biodiesel trading between fuel distributors on Friday, October 9, reinstating a measure designed to improve supply-chain traceability and strengthen regulatory oversight of the country’s diesel market.
The restriction will take effect on the first day of the month following its publication in the Federal Official Gazette, according to an ANP statement. The regulator also instructed its technical department to prepare a comprehensive assessment before the measure expires, potentially leading to permanent changes under ANP Resolution No. 950/2023, which governs fuel distribution activities.
The decision follows an evaluation of an earlier restriction implemented between May 2025 and June 2026. ANP concluded that the previous measure reduced discrepancies in biodiesel transactions, simplified commercial flows and improved its ability to monitor compliance with mandatory blending requirements.
Regulator Identified 579,000 Cubic Meters of Discrepancies
ANP’s initial intervention followed the discovery of inconsistencies in biodiesel transactions that complicated efforts to track volumes entering Brazil’s mandatory diesel blending system.
Between March 2024 and April 2025, the regulator identified more than 579,000 cubic meters of biodiesel without a direct match to purchases from suppliers. That represented approximately 5.9% of total reported acquisitions during the period.
Some transactions were not adequately classified in ANP’s Product Movement Information System, known as SIMP-ANP, making it more difficult for regulators to reconcile reported biodiesel purchases with volumes used to support diesel B sales.
Diesel B is the commercially distributed fuel containing the mandatory proportion of biodiesel blended with conventional petroleum diesel.
By restricting transactions between distributors, ANP aims to simplify the chain of custody and improve visibility into the origin and destination of biodiesel used in the blending process.
The regulator’s technical review found that the previous 14-month restriction helped reduce discrepancies and strengthen oversight of transactions associated with mandatory blending obligations.
Previous Restriction Had No Significant Supply Impact
ANP said its assessment found no material disruption to biodiesel availability during the previous restriction.
Distributors continued to access the product without significant difficulties, while overall fuel supply remained stable.
The findings covered August 2025, when Brazil increased its mandatory biodiesel blending requirement to 15% from 14%.
That increase raised the volume of biodiesel needed for diesel production, but ANP reported no significant supply constraints attributable to the trading restriction.
The regulator’s findings suggest that limiting transactions between distributors can improve transaction monitoring without necessarily restricting access to biodiesel supplies.
The agency did not provide estimates of the new restriction’s potential financial impact on fuel distributors or biodiesel producers.
Diesel Quality Indicators Improved During Earlier Restriction
ANP also examined results from its Fuel Quality Monitoring Program, known as PMQC, as part of its regulatory assessment.
When Brazil increased its mandatory biodiesel blend from 12% to 14% in March 2024, more than 9.5% of diesel B samples tested failed to meet applicable quality standards.
In August 2025, when the blending requirement increased from 14% to 15%, the noncompliance rate was approximately 4.9%.
The improvement coincided with the earlier trading restriction and additional inspection and monitoring initiatives.
ANP did not attribute the reduction in noncompliance exclusively to the restriction. The agency cited the combined effects of regulatory enforcement and monitoring measures during the period.
The results formed part of the evidence supporting the decision to reinstate the trading limitation.
ANP to Consider Permanent Regulatory Changes
The new restriction will remain in force for 24 months while ANP conducts further technical analysis of biodiesel commercialization practices.
The agency’s board will review the findings before the temporary measure expires and determine whether the restriction should become a permanent feature of Brazil’s fuel distribution regulations.
Any permanent change could involve amendments to ANP Resolution No. 950/2023.
The decision comes as Brazil maintains a mandatory 15% biodiesel blend in diesel sold at filling stations, making traceability and compliance monitoring central elements of the country’s fuel distribution framework.
ANP’s latest assessment provides regulators with additional evidence on how trading restrictions affect transaction transparency, product quality and fuel availability.
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