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With Consecutive Increases in Gasoline and Diesel Prices, Biofuels Become a Way to Reduce Fossil Fuel Costs
Biofuels, a source where all material used for energy generation comes from organic biomass, can become an alternative to reduce the prices of gasoline and diesel, which have been consistently undergoing adjustments. In this sense, taking simple measures in the ethanol, biodiesel, biogas, and other sectors can positively affect the price of fossil fuels.
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With the change of taxes and tax incentives, it is possible to reduce the cost of ethanol, biodiesel, and other biofuels. In doing so, the price of these fuels will also fall on the final consumer, which can significantly reduce fossil fuel consumption and promote a switch to biofuels. Brazil can reduce or eliminate its imports of diesel and gasoline, decreasing the price of these fuels.
Miguel Novato, director of the National Institute of Meteorology (Inmet), in a text published on his LinkedIn, presented some ways. Here is what they are:
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- a) Eliminate the CBIO tax;
- b) Eliminate the tax on biofuels;
- c) Authorize Reidi for Biogas;
- d) Create a credit line for biofuels with climate fund guarantees;
- e) Regulate biogas as a substitute for LPG and reduce taxes on biogas trucks and tractors;
- f) Eliminate ICMS for biofuels for 3 months;
- g) Regulate direct sales, and B100.
Biofuels are a renewable energy source used through the burning of biomass or its derivatives, such as ethanol (fuel alcohol), biodiesel, biogas, vegetable oil, and others.
It can be noticed that a large part of the proposals for incentivizing biofuels to reduce prices can be made without complexity and, therefore, have a direct impact on the fuel market.
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