Brazil's National Council for Energy Policy (CNPE) approved a temporary increase in the mandatory ethanol blend in gasoline from 30% to 32% [1].
The move aims to lower the country's dependence on external fuel sources and reduce the volume of gasoline imports. By increasing the domestic ethanol requirement, the government intends to mitigate the impact of rising fuel prices on consumers [1, 5].
According to the approved measure, the new blend requirement will remain in effect for 180 days [4]. This period may be extended depending on the economic and energy needs of the country [4].
The adjustment is expected to result in significant fuel savings. Reports indicate that the increase in ethanol content will save approximately 900 million liters of gasoline [4].
This policy shift focuses on leveraging Brazil's robust ethanol production capacity to stabilize the domestic market. The CNPE said the measure was approved on July 14 [1, 4]. The change will be applied nationwide at gasoline stations [2, 5].
The decision comes as the government seeks tools to manage inflation and volatility in the global oil market. By substituting a portion of imported gasoline with locally produced ethanol, the administration seeks to protect the national economy from external price shocks [1, 5].
“The mandatory ethanol blend in gasoline increased from 30% to 32%”
This policy reflects Brazil's strategic use of its agricultural sector to bolster energy security. By increasing the ethanol mandate, the government reduces its exposure to the volatile global crude oil market and lowers the trade deficit associated with fuel imports, while supporting the domestic sugarcane and corn ethanol industries.
