Brazil Plans to Raise Ethanol Blend in Gasoline to 30%

Brazil plans to increase the ethanol blend in gasoline from 27.5% to 30% to support its burgeoning biofuel industry, following technical tests confirming engine compatibility. The proposal, which aligns with legislation passed by Congress last year, is awaiting final approval from the National Energy Policy Council. This change is expected to boost ethanol demand by approximately 1.3 billion liters annually, reduce gasoline imports, and potentially lower gasoline prices for consumers. The increase is also anticipated to stimulate investments in ethanol production, particularly as new corn-processing plants come online. Industry experts suggest that this move could enhance Brazil's position in the global biofuel market, especially as the country shifts some sugarcane production towards ethanol to meet rising demand. Overall, the initiative is seen as a step toward modernizing Brazil's energy matrix and reducing greenhouse gas emissions.