Brazil fuel market sees record ethanol sales and E35 blend debate

Brazil is experiencing a significant shift in its fuel market, characterized by record-breaking ethanol consumption and debates over increasing ethanol content in gasoline. In August, hydrated ethanol sales reached 2.055 billion liters, marking the third-highest volume in history and a 21.1% increase compared to the previous year. This surge is attributed to increased production and improved price competitiveness against gasoline.

Simultaneously, the Brazilian government is considering increasing the anhydrous ethanol blend in gasoline to 35% (E35). While intended to mitigate the effects of international energy volatility, the proposal has faced criticism from the automotive industry. Organizations like Anfavea have raised concerns regarding the need for rigorous durability testing, noting that higher ethanol concentrations could lead to engine management issues, difficulty starting in cold weather, and potential damage to fuel system components like hoses and injectors in older or imported models.