Brazil raises mandatory ethanol blend in gasoline to 32%

Brazil’s National Energy Policy Council (CNPE) has approved an increase in the mandatory ethanol blend in gasoline from 30% to 32%. The measure will remain in force for 180 days and may be extended for another six months. The previous increase, from 27% to 30%, took effect in August 2025.

The government expects the transition to E32 gasoline to eliminate the need to import around 900 million liters of gasoline annually. According to the Ministry of Mines and Energy, the decision reflects the volatility of global crude oil and fuel markets and is aimed at strengthening the country’s energy security.

Government tests showed that gasoline containing 32% ethanol delivers performance comparable to lower ethanol blends without causing significant impacts on vehicle operation. The positive results paved the way for the next stage of expanding renewable fuel use in Brazil.

The decision is also expected to provide a major boost to Brazil’s bioethanol industry. Additional ethanol demand is projected to reach about 1 billion liters per year, increasing the share of sugarcane processed into biofuel while further supporting the rapid expansion of corn ethanol production.

Industry associations welcomed the measure and are already looking toward a future transition to E35 gasoline containing 35% ethanol. They noted that the necessary technical studies are already underway and believe higher ethanol blends will further reduce Brazil’s dependence on gasoline imports while improving fuel supply security.

Not all market participants support the decision, however. Fuel distributors and gasoline importers have expressed concerns about the potential impact of E32 on vehicle components and maintenance costs. Nevertheless, the government and biofuel industry representatives consider the new mandate an important step toward expanding Brazil’s domestic renewable fuel market.

Tags: corn, Brazil, biofuel