Brazil proposed raising the amount of biodiesel that’s blended with diesel from 5 percent as producers of the renewable fuel contend with a supply glut.

“We’ve already sent to the Presidency a proposal to increase the mixture of biodiesel with diesel,” Energy Minister Edison Lobao told reporters today in Brasilia. “There’s still been no decision taken.”

The world’s second-biggest biodiesel industry is operating at 50 percent of capacity, Jeronimo Goergen, president of a parliamentary lobby group for the renewable fuel, said today in a telephone interview.

Goergen said the blend rate may rise to 7 percent and then expand again to 10 percent in 2020. Lobao didn’t give a figure for the proposed increase.

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