By Brazil Stock Guide – Brazil’s National Energy Policy Council approved an increase in the mandatory share of anhydrous ethanol in gasoline to 32% from 30%, as the government seeks to reduce fuel imports and expand the use of domestically produced biofuels.
The measure, approved Tuesday, will take effect after publication in the country’s Official Gazette. It will initially remain valid for 180 days and may be extended once for an equal period.
The transition will be automatic for consumers. Fuel distributors will be responsible for supplying service stations with gasoline containing the new ethanol percentage, with no adjustments required from motorists.
The council, known as CNPE, is chaired by Mines and Energy Minister Alexandre Silveira and advises the presidency on energy policy. Its members include representatives from the Finance Ministry, the presidential chief of staff’s office and the Planning Ministry.
Import Dependence
The Mines and Energy Ministry said the higher blend is intended to reduce Brazil’s exposure to international oil-price volatility, which has intensified amid conflict in the Middle East.
“In this context, the use of a larger share of ethanol produced in the country seeks to reduce dependence on imported fossil fuels and enable a greater presence of this biofuel in Brazil’s energy matrix,” the government said in a statement.
Imported supplies account for about 15% of the gasoline consumed in Brazil. The ministry estimates that raising the ethanol content to 32% could eliminate the need to import approximately 450 million liters of gasoline.
Silveira has said the measure may also move Brazil closer to self-sufficiency in gasoline supply by reducing the volume needed from overseas markets.
President Luiz Inácio Lula da Silva had previously announced the increase, though it still required formal approval from the CNPE. The meeting to ratify the measure was initially scheduled for May 7 and was postponed four times.
Second Increase Under Lula
The decision marks the second increase in the mandatory ethanol share during Lula’s current term. The blend was raised to 30% from 27.5% in 2025.
According to the Mines and Energy Ministry, technical testing found no significant effects on vehicle performance, “including those equipped with non-flex-fuel engines.”
The testing was intended to assess the impact of the higher ethanol concentration on both flex-fuel vehicles and cars designed to run exclusively on gasoline.
Government Studies 35% Blend
Brazil is also evaluating a further increase in the ethanol content to 35%, a formulation known as E35.
The studies are being conducted by the Permanent Technical Committee for Fuel of the Future and focus on component durability, engine performance and the long-term effects of using gasoline with higher ethanol concentrations.
“Alongside the implementation of the measure, studies remain underway within the Permanent Technical Committee for Fuel of the Future to evaluate blends with higher ethanol percentages, including E35, or 35%,” the ministry said. “The tests focus on analyzing component durability and the effects of long-term fuel use.”
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