Brazil’s government plans to propose raising the mandatory anhydrous ethanol blend in gasoline from 30% to as much as 32%, a move designed to curb fuel imports, strengthen national energy security, and expand lower-carbon transport options, according to Energy and Mines Minister Alexandre Silveira. The formal proposal will be submitted to the National Energy Policy Council, known as CNPE, within 15 days, following discussions at the presidential palace in Brasília.
Energy Security and Import Reductions
According to Silveira, the proposed shift to an E32 blend will reduce Brazil’s reliance on foreign fuel, cutting imported gasoline needs by an estimated 450 million liters. The measure directly supports the country’s broader decarbonization agenda and aligns with the Fuel of the Future law, which encourages the production of sustainable fuels.
Silveira stated that the initiative helps shield domestic consumers from international price volatility driven by geopolitical conflicts. “It is energy security, fuel price affordability, decarbonization, national development, more planting, more jobs, more income,” Silveira said, according to Agência Brasil. Technical studies indicate the transport sector can safely adopt the 32% blend, fulfilling demands brought forward by the biofuels industry.
Consumer Impact and Biofuel Savings
Biofuels industry representatives report that the expanded ethanol mix will provide immediate financial relief at the pump. Evandro Gussi, president of the sugarcane and bioenergy industry group Unica, noted that ethanol currently trades at an average of 2.40 reais per liter cheaper than gasoline.
“In other words, a 2% increase in the blend will bring an equivalent reduction to consumers,” Gussi said. He added that consumer savings reached approximately 2 billion reais over the past three months due to the price gap, while helping Brazil avoid roughly 8 billion reais in gasoline import costs since the onset of the conflict in Iran.
Production Growth and Technical Readiness
Industry leaders maintain that agricultural output supports the transition. Mario Campos, president of Bioenergia Brasil, projected that national ethanol production will climb by more than 4 billion liters this year, driven by favorable public policies.
Addressing potential performance concerns, Gussi emphasized that a 32% blend was successfully tested when authorities raised the mandatory mix to 30% in June of last year. The CNPE must now formally review the proposal before implementation.
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