Brazil temporarily increases the mandatory ethanol blend of gasoline from 30% to 32%

The Brazilian 'National Energy Policy Council', or CNPE, approved on Tuesday a temporary increase in the mandatory ethanol mix in gasoline from 30% to 32%, according to a statement released by the Ministry of Mines and Energy. The measure, which is expected to be implemented by the end June, was delayed or cancelled in recent weeks. Brazil increased the mandatory ethanol mix in gasoline from 27% to 30% in August of last year. Brazil will no longer need to import 900 million liters of gasoline each year due to the adjustment of the blend ratio, according to the Ministry. It also noted that the change was made to account for the volatility in international fuel and oil markets. The ministry said that the E32 blend performed as well as lower ethanol blends with no noticeable impact on vehicle performance. Industry figures from earlier this year showed that a higher ethanol blend would increase the amount of sugarcane used to make biofuels in Brazil. It would also boost the growth of corn-based alcohol. In the last few months, the industry has called for a higher blend due to the U.S./Israel war against Iran and the rising costs of gasoline imported from abroad. This also brought 'uncertainty' in Brazil fuel supply. UNICA, a group representing the sugarcane industry, said that "the measure strengthens Brazil's energy security because it increases?the share?of renewable fuels produced locally. This helps to reduce dependence on imported gasoline and increase supply predictability." UNICA said the estimated increase in demand for ethanol is approximately 1 billion liters per year, compared to the old blend. It expects to see a gradual move towards a 35% blend. The necessary studies are already underway.

(source: Reuters)