The Brazilian federal government increased the mandatory blend of anhydrous ethanol in gasoline from 30% [1] to 32% [1].
This shift aims to lower the country's reliance on foreign fuel imports and stimulate demand for domestically produced renewable biofuels. By increasing the ethanol ratio, the government intends to reduce the volume of gasoline that must be purchased from international markets.
Vice President Geraldo Alckmin said the mandatory mixture would rise to 32% starting Wednesday, May 24, 2026 [3]. The move follows internal government deliberations where officials sought to align energy policy with the interests of the ethanol industry. Minister of Mines and Energy Alexandre Silveira said the majority of the federal government supported raising the mixture level to 32% [5].
The policy change addresses a significant economic pressure point, as gasoline imports account for approximately 15% [8] of national demand. Reducing this figure through higher biofuel integration is a central pillar of the current administration's energy strategy.
However, the transition has faced scrutiny from the automotive sector. A representative from the National Association of Vehicle Manufacturers (ANFAVEA) said the automotive sector is calling for technical tests to determine the effects of the 32% mixture on vehicles [6]. These industry concerns center on whether higher ethanol concentrations could impact engine performance or longevity in older car models.
Despite these requests for further testing, the government proceeded with the implementation timeline. The decision reflects a broader push to prioritize the green economy and support the agricultural sector, which produces the sugarcane used for anhydrous ethanol.
“The mandatory mixture of anhydrous ethanol in gasoline will pass from 30% (E30) to 32% (E32)”
This policy shift signals Brazil's commitment to decarbonization and economic sovereignty by leveraging its massive sugarcane infrastructure. By marginally increasing the ethanol blend, the government can significantly reduce the outflow of foreign currency used for fuel imports while providing a guaranteed market for biofuel producers, though it risks friction with automotive manufacturers over vehicle compatibility.
