This decree aims to promote the competitive biodiesel Development Program in its initial phase by establishing the Price Stabilization Fund of Biodiesel. The objective of the Decree is to diminish and contain the impacts of volatile fuel prices on local economy by promoting greater use of biodiesel.
The fund allows to finance the extra costs that will be incurred by PETROPAR in the production of biodiesel. Essentially, the fund supports the purchase of biodiesel at the reference prices established by Art 36 of Decree 10.703.The fund is financed by a levy of 4py/litre (.01USD/litre) on sales of diesel by PETROPAR. Additionally, it obtained all the proceeds from the decree 5984/99 since the month of October in 2011 up to the effective day of this decree.