Brazil’s state-controlled oil company Petróleo Brasileiro has expressed strong opposition to a government-led programme to increase the use of biofuels following its recent decision to completely withdraw from the sector.

In a document the energy ministry posted on its website, the company known as Petrobras said it was worried about the impact of more biofuels on forest conservation and food production.

The document, made public last week, was prepared in response to government calls for public comment on its RenovaBio program to boost biofuels. Petrobras was the only company to submit a comment. Most submissions were from trade associations.

Long an ally of Brazil’s ethanol industry, Petrobras said in the document that sugar mills were financially unprepared to raise ethanol output. It also suggested it was not necessary to increase biofuel use to meet Brazil’s commitments under a global climate pact.

Petrobras’ new position marks an about-face from the recent past, when it aimed to diversify energy sources and become one of the world’s five largest biofuels producers. The company did not respond to a request for additional comment.

In December, Petrobras agreed to sell stakes in ethanol producers Guarani and Nova Fronteira and close some biodiesel plants, as chief executive officer Pedro Parente prioritised investments in offshore oil fields to ramp up cash generation.

Petrobras’ new position on biofuels has surprised former partners including Donizete Tokarski, who heads the biodiesel association Ubrabio which supports the government programme.

"This is a throwback to outdated views on biofuels and a big step backwards for the company," he said. One of Brazil’s commitments under the 2016 Paris climate agreement was to sharply increase the share of biofuels in its energy mix.