The sale of biodiesel experienced a record increase of 383% in volume (YoY), reaching 51,145,298 litres, reported the Ministry of Industry and Commerce by providing a comparative report between the first half of 2024 and last year’s numbers.
The report attributes the the increase to the government’s decision to increase the mix of biofuels to 5%. In October last year, the Ministry of Industry and Trade led to an increase in the mandatory percentage of the mix of biofuels suitable for use in diesel engines for type III diesel, taking it from 2 to 5 per cent.
This decision was celebrated by representatives of the Paraguayan Chamber of Biofuels and Renewable Energies (Biocap), who expressed the enthusiasm of the sector in the face of the growth prospects, thanks to the gradual increase of the biofuel mixture for diesel engines.
“This advance would benefit not only our sector, but also the entire production chain, starting from the countryside, since our raw material comes from oilseeds such as soybeans”, said Massimiliano Corsi, head of Biocap, at the beginning of the year.
In Paraguay, biofuel is obtained from corn oil and soybean oil. Using domestic produce for biofuel which is then also processed domestically, is widely regarded to have substantial benefits to the wider economy compared to either importing or even exporting the goods themselves.
Raising the percentage of mixes “brings important advantages ranging from the economic edge to the environmental, generating an important value chain at the local level”, according to the Minister of Industry and Commerce, Javier Giménez.
In addition, “it avoids the idle capacity of the industry, allows the permanence of foreign exchange, generates an important value chain in agriculture, benefiting small and medium-sized producers, [and] freight services”, he adds.
The growth of the item has also had a positive impact on export statistics. In the first six months of 2024, sales of US$3.8 million have been recorded in this category under the maquila regime.
