Arabfields, Naïla Mokhtari, Correspondent, São Paulo, Brasil — Brazil’s oil and fuel regulator is preparing to strengthen oversight of the country’s biodiesel market by gaining daily access to electronic invoices, a move designed to identify irregularities in mandatory fuel blending more quickly and improve transparency across the distribution chain.
The National Agency of Petroleum, Natural Gas and Biofuels (ANP) is proposing changes that would allow it to monitor transactions involving biodiesel, pure mineral diesel, known as diesel A, and blended diesel, known as diesel B. The proposal was discussed at a public hearing on October 27, 2026, as the agency seeks to improve compliance with national fuel regulations.
Brazil currently requires diesel sold at the pump to contain 15% biodiesel, a blend introduced in August 2025. Under the proposed system, the regulator would be able to compare distributors’ biodiesel purchases and inventories against the volumes of blended diesel they sell.
The change would mark a significant shift from the existing monitoring system, which relies mainly on monthly declarations submitted by regulated companies. Because those reports arrive in the month following the transactions, discrepancies can remain undetected for weeks.
For fuel distributors operating in Brazil’s competitive market, the proposed monitoring system could increase the importance of accurate stock management and transaction records. Companies would need to demonstrate that their biodiesel purchases and available inventories are consistent with the quantities of blended diesel sold to customers.
The regulator’s concerns are supported by earlier findings. Between March 2024 and April 2025, the ANP identified more than 579,000 cubic metres of biodiesel movements without a direct match to purchases from suppliers. The volume represented approximately 5.9% of total reported purchases during the period examined.
The agency also reported improvements in fuel-quality monitoring. The proportion of diesel B samples found to be non-compliant fell from more than 9.5% after the blending requirement increased to 14% in March 2024 to around 4.9% following the introduction of tighter controls and other monitoring measures in 2025. The figures suggest progress, although they do not establish that any single measure was responsible for the entire decline.
For motorists and businesses that depend on diesel, the issue extends beyond regulatory compliance. Irregular blending can create unfair competition between distributors that follow the rules and those that may reduce costs by failing to meet the required standard. Stronger monitoring could help protect compliant operators and reinforce confidence in fuel quality.
The draft changes would amend two existing ANP resolutions governing biodiesel trading and the submission of information by regulated companies. The proposal follows legislation adopted in 2024 and a regulatory decree issued in 2025.
The agency will review contributions received during the consultation process before its technical team and federal legal advisers assess the draft for possible adjustments. The proposal must still undergo the required regulatory steps before a final decision is made.
Looking ahead, daily invoice access could allow the ANP to detect inconsistencies much sooner than under monthly reporting, potentially reducing opportunities for irregular transactions to go unnoticed. However, the effectiveness of the system will depend on the quality of the electronic records, the agency’s ability to analyse large volumes of data and the enforcement action taken when discrepancies emerge.
For Brazil’s biodiesel industry, the proposed reform signals a move towards more continuous, data-driven supervision. If implemented effectively, it could improve traceability across the fuel supply chain and strengthen compliance with the country’s renewable fuel requirements, while leaving distributors with less time to resolve unexplained gaps between purchases, stocks and sales.
