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ANP recommends discontinuing fuel formulation

ANP has approved a regulatory assessment recommending the discontinuation of gasoline and diesel formulation in the manner currently permitted under its regulation.

The activity consists of producing gasoline or diesel through the mechanical blending of liquid hydrocarbons. It has been suspended on a precautionary basis since July 2025 while the agency evaluated its effects on supply, competition, product quality and consumer protection.

The assessment found that formulators had made only a limited contribution to domestic fuel supply and that the suspension had not materially affected availability. It also identified risks involving tax fraud, off-specification fuels, unfair competition and high enforcement costs.

Market Impact

The proposed change may:

  • reduce the number of authorized fuel-production models
  • affect existing formulators and their supply agreements
  • alter competition among refiners, importers and distributors
  • increase the importance of traceability and quality controls
  • require commercial restructuring by affected market participants

Legal & Regulatory Implications

The recommendation does not immediately terminate the activity. A definitive regulatory change remains subject to the applicable rulemaking procedure, including further analysis and public consultation.

Affected companies should prepare to assess:

  • the status and duration of existing authorizations
  • transition rules and potential grandfathering arrangements
  • termination or adaptation of supply and processing contracts
  • inventory, asset and investment exposure
  • administrative participation in consultation and hearing procedures
  • potential judicial or regulatory challenges

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