The Brazilian government is proposing to increase the mandatory blend of ethanol in gasoline from 30% to 32% [1].
This move is intended to bolster national energy self-sufficiency and lower the country's dependence on foreign fuel sources. By substituting a portion of gasoline with domestically produced ethanol, Brazil seeks to insulate its economy from the volatility of global oil prices.
Alexandre Silveira, the minister of Mines and Energy, said that a large majority of the federal government supports the elevation of the mixture level [3]. The proposal involves a two percentage point increase in the ethanol requirement [1].
According to Silveira, this adjustment would result in an estimated saving of 450 million liters of imported gasoline [1]. He said that the increase in ethanol is a strategic step toward reducing external dependency.
To move the proposal forward, the ministry must seek approval from the National Energy Policy Council, known as the CNPE [2]. Silveira said he would submit a resolution to the council within 15 days of the initial May 9 announcement to evaluate the proposal [2].
Government studies mentioned in mid-May 2026 indicate that the shift is part of a broader strategy to manage fuel costs [4]. The transition to a higher blend is designed to leverage Brazil's strong sugarcane ethanol industry to offset the need for expensive imports [1].
Silveira said, "With an increase of 2% of ethanol, 450 million liters of gasoline will no longer be imported" [1].
“The Brazilian government is proposing to increase the mandatory blend of ethanol in gasoline from 30% to 32%.”
This policy shift reflects Brazil's strategic pivot toward domestic biofuels to stabilize its trade balance. By reducing the import of 450 million liters of gasoline, the government aims to lower the vulnerability of domestic pump prices to international market shocks while supporting the domestic agricultural sector.
