Brazil biodiesel output dips

Brazilian biodiesel production fell 3.6% year-on-year in the first five months of 2016 to 1.55Mm3, according to the latest figures published by the mining and energy ministry (MME).

In May, production dipped to 309Mm3 from 339Mm3 a year earlier, the MME said in a report.

Lower output coincides with falling consumption of the biofuel as Brazil's worst recession in decades impacts demand for diesel B, used by utility vehicles. Government rules dictate that diesel B must comprise a 7% biodiesel admixture.

Meanwhile Brazilian ethanol production rose 2% year-on-year in May to 3.06Bl, MME said.

Hydrous ethanol, used for flex fuel and gasoline-free vehicles totaled 1.3Bl. Anhydrous ethanol – mixed with gasoline – was 800Ml.