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Brazil’s National Energy Policy Council, the CNPE, on Tuesday approved temporarily raising the mandatory ethanol blend in gasoline to 32% from 30%, the Ministry of Mines and Energy said in a statement.
The move, which will last 180 days and could be extended later for an equal period, had been expected by the end of June, but several council meetings were postponed or suspended in recent weeks.
Brazil last increased its mandatory ethanol mix in gasoline to 30% from 27% in August last year.
The adjustment in the blend ratio is expected to eliminate the need for Brazil to import around 900 million liters of gasoline per year, the ministry said, adding that it took into account the volatility of international oil and fuel markets.
«The E32 blend showed performance equivalent to that observed with lower ethanol-content blends, with no significant impact on vehicle operation», — it said.
A higher ethanol blend will increase the share of sugarcane processed into biofuel in Brazil, industry figures showed earlier this year, while also boosting the expansion of corn‑based ethanol.
Industry calls for a higher blend rose in the last few months amid the U.S.-Israel war with Iran, as surging oil prices abroad raised the costs for gasoline imports and brought uncertainty to Brazil’s fuel supply.
«The measure strengthens the country’s energy security by expanding the share of a renewable fuel produced domestically, helping to reduce dependence on gasoline imports and increasing supply predictability», — sugarcane industry group UNICA said in a statement.
Estimated additional demand for ethanol from the greater blend is about 1 billion liters of ethanol per year compared to the previous mix, UNICA said, adding that it expects a gradual advance toward a 35% ethanol blend, with the necessary studies already underway.
Local fuel distributors and fuel import lobbies issued a joint statement on Monday expressing concerns with the blend increase, citing potential effects on vehicle performance, component durability and maintenance costs.
The increase to E32 comes at a time of increased instability for oil markets, UNEM, the corn ethanol industry association, said in a statement, adding that the decision reinforced expectations for an increase to 35%.
UNEM “will monitor the implementation of the new blend and the ongoing technical studies, with the aim of establishing the necessary conditions for the transition to E35,” the group said.
More details: https://www.reuters.com/business/energy/brazil-raises-mandatory-ethanol-blend-gasoline-32-30-2026-07-14/