Analysis by Platts Analytics shows that the country needs to stay alert to be able to meet demand and that demand for biodiesel should also increase
São Paulo, 21 May 2021 – The demand for diesel in Brazil is expected to grow 4,4% in 2021, mainly driven by the transport of agricultural commodities and household items. That's what S&P Global Platts Analytics points out, the main independent provider of information and reference prices for the commodities and energy markets.
In an analysis disclosed to the market, Platts Analytics assesses that the demand for diesel in the country remained resilient even in the pandemic scenario in 2020 and that, in March 2021, a period marked by the blockade of important regions such as the state of São Paulo, the demand for the fuel was significant, accumulating an increase of 16,3% in the year (158 thousand barrels more per day).
To meet the growing demand for diesel, Platts Analytics suggests that Brazil increase its domestic production or increase imports, or even that it takes both initiatives, especially in the midst of an uncertain scenario generated by risks of new waves of COVID-19 infection. XNUMX that may harm the growth forecast.
Biodiesel – The analysis also provides an assessment of the biodiesel market in the country, which has seen demand increase since the beginning of the pandemic. Amid the growth in demand for soy, which took commodity prices to record levels, the amount paid for biodiesel also skyrocketed, with the government interceding on some fronts. In March of this year, the biodiesel mandate rose to 13%, but in a short time it was reduced to 10%, with the reduction being extended until August 2021. After the announced reduction, Platts Analytics estimates an increase of 2,3% in demand for biodiesel in the year (113 thousand barrels per day more).
About S&P Global Platts – The leading independent provider of information and benchmark prices for the commodities and energy markets, S&P Global Platts has clients in more than 150 countries who rely on the company's expertise in news, pricing and analysis to bring greater transparency and efficiency to markets . S&P Global Platts coverage includes oil and gas, energy, petrochemicals, metals, agriculture and shipping. S&P Global Platts is a division of S&P Global (NYSE: SPGI), providing essential intelligence for individuals, businesses and governments to make decisions with confidence. For more information, visit www.spglobal.com/platts/pt
Source: Edelman Brazil
