The transport sector in Paraguay has managed to halt, at least temporarily, the increase in the percentage of biodiesel in diesel fuel. The Ministry of Industry and Commerce (MIC) has reversed its initial decision and has set a mandatory 7% blend until December 31, 2026, instead of the 8-10% that was originally scheduled to take effect. The measure, outlined in Resolution No. 565, supersedes the previous Resolution No. 472 and responds to complaints from importers, distributors, and truckers' associations, who warned of potential engine damage and increased maintenance costs.
The Paraguayan government insists that its long-term objective remains Increase the use of biofuels to reduce dependence on imported diesel and to promote local industry. In fact, the new regulations stipulate that, starting January 1, 2027, the minimum percentage will return to 8%. The Deputy Minister of Trade and Services, Alberto Sborovsky, explained that the adjustment is merely a "temporary measure" to facilitate an orderly transition and that the country's energy policy remains unchanged. "The difference between 7% and 8% is minimal from a technical standpoint," he noted, adding that the studies conducted support the plan's viability.
The origin of the conflict: from 8% to 7%
The controversy began when the MIC published Resolution No. 472, which established a mandatory mixture of between 8% and 10% biodiesel for type III diesel, the most commonly used by cargo vehicles. The measure was based on Law No. 7635/2026, which modified the biofuels promotion regime. and allowed the ministry to set percentages between 5% and 20%. The government defended the initiative as a tool to strengthen energy security, industrialize agricultural production, and reduce polluting emissions. However, from the outset, the transport and automotive sectors expressed their opposition.
The Paraguayan Chamber of Biofuels and Renewable Energies (Biocap) supported the increase, arguing that Paraguay has a unique opportunity to take advantage of its abundant soybean oil production. Its president, Massimiliano Corsi, stated that biodiesel is not only cheaper than fossil diesel under current conditionsInstead, it would create jobs and reduce the outflow of foreign currency. "We need to industrialize the soybean oil that is currently exported as a raw material," he stated. He also noted that Brazil uses a 15% blend without problems, urging the strengthening of quality controls and best practices.
Opposing positions: producers versus transporters
On the other hand, the Paraguayan Association of International Freight Transport (Apatraci) and the Chamber of Automotive and Machinery Distributors (Cadam) warned that Many modern engines are not approved for mixtures higher than 7%.According to Liza Ávalos, president of Apatraci, the lifespan of fuel injection pumps has been drastically reduced: from between five and eight years to barely two years since the introduction of the new fuel mixture. Repairing a pump can cost between 10 and 15 million guaraníes, and replacing all six injectors on a Scania truck costs over 70 million. "The wear is far too rapid," the union's technicians complained.
Deputy Minister Sborovsky, for his part, has tried to calm tempers by assuring that The MIC will support the implementation with monitoring, not with immediate sanctions.Inspections to verify compliance will begin within 60 days, giving companies time to adapt. He also ruled out the possibility that the new blend will increase the price of diesel, as biodiesel is currently price-competitive. However, transport companies fear that when international oil prices fall, the cost difference will widen dramatically and ultimately affect consumers.
With Resolution No. 565, Paraguay has opted for an intermediate path: it maintains its commitment to biofuels but grants a respite to the sectors that were asking for more time. The 7% will remain until the end of the year and from January 2027 it will rise to 8%.with an eye toward achieving higher percentages in the future. Meanwhile, the debate about biodiesel quality, engine compatibility, and the impact on drivers' wallets remains open. What is clear is that the energy transition in transportation doesn't happen overnight, and that in Paraguay, as in other countries, biodiesel is progressing in fits and starts, caught between industry pushes and resistance from those who use it daily.