SÃO PAULO, BRAZIL – In an effort to reduce the import of diesel fuel and reduce pollution, Brazil’s President Dilma Rousseff last week signed an executive order increasing the amount of biodiesel to be added into diesel fuel starting in July. The order increases the mixture of biodiesel from the current five percent to six percent (B6) starting July 1st and from six percent to seven percent (B7) starting November 1st.

According to Carlo Lovatelli, president of Brazilian Association of Vegetable Oils, or ABIOVE, today more than twenty percent of all diesel fuel consumed in the country comes from abroad. ABIOVE data shows that in 2013 more than 10.5 million cubic meters of diesel oil was imported by Brazil, at a cost of US$2.7 billion.“This order strengthens our bio fuel industry by securing the market and improving profitability,” wrote Rousseff in her official Twitter account.

“This contributes negatively for the financial result of Petrobras,” states the association, since the state-owned company is the one which imports the diesel but is unable to pass on the final cost of importing to its consumers.

For Lovatelli the latest policy measure is very welcomed. “Everyone benefits with the higher use of biodiesel: population, manufacturers and small family farms.” ABIOVE has proposed an increase of the mixture of up to ten percent (B10).