Marco Antonio Almeida, the power sector secretary of Brazil’s Mines and Energy Ministry, said that once the local market matures, oil and gas giant Petrobras may stop mediating the negotiations at biodiesel auctions. Almeida said the government is looking for new auction models so as to encourage the participation of private agents in the biodiesel market. Right now, Petrobras mediates in the tenders with the goal of fulfilling some requirements, such as the mandatory 5% biodiesel blends, as well as specific tax issues. Under the current set-up, Petrobras purchases biodiesel based on the lowest price offered and the logistics factor, and then sells it to distributors in what is referred to as a re-auction. Under a new model, Petrobras will buy biodiesel while considering the requests of qualified distributors, based on price, logistics and the product’s quality. Almeida said the new model was developed to benefit the most efficient suppliers, and offers the best quality products, timely delivery and the lowest price. (May 14, 2012)