Peru delays implementation of higher biofuel blending mandate

Peru has decided to delay the planned roll out of an obligatory biofuel-blending mandate in the Peruvian capital, Lima, and in the province of Callao in order to avoid the need for imports, according to a press release by the Ministry of Energy and Mines. Projected national demand, including the capital, is 10,000 cubic meters (cu m) per month. There is currently a production shortfall of 4,500 cu m per month. Sales of the blend will now start in June 2011, rather than October 1 this year, as previously planned. The government has been gradually rolling out an ethanol program that makes the sale of gasoline blends with 7.8% ethanol mandatory. A total of 964 service stations across nine regions sell gasoline blends containing ethanol. The extension of the mandate to the capital means that a further 949 service stations and pumps will supply it. The final region to be incorporated into the program under the current timetable will be Tacna in July 2011. (September 29, 2010)