Brazil raises ethanol content in gasoline to 32% amid market and vehicle concerns

The National Energy Policy Council (CNPE) approved an increase in the anhydrous ethanol share in gasoline from 30% to 32%, taking effect on 1 August 2026. The policy aims to curb inflation, reduce gasoline imports by an estimated 900 million litres per year and lower emissions, while boosting the ethanol sector in Mato Grosso do Sul.

For drivers of modern flex‑fuel vehicles built after 2003, the higher blend will have little practical impact because electronic fuel‑management systems already handle a wide ethanol range. Most drivers may notice a modest rise in fuel consumption, as ethanol has a lower calorific value than pure gasoline.

Older carbureted cars, especially those over 30 years old, gasoline‑only models from the 1990s and imported non‑flex vehicles, are at greater risk. The higher ethanol concentration can accelerate corrosion of zinc‑based alloys, fuel‑lines, hoses and fuel pumps, potentially leading to premature component wear. Experts advise owners of such vehicles to monitor hoses, pump seals and carburetor joints for cracks or hardening.

Overall, the government expects the change to have limited day‑to‑day effect on most motorists while delivering economic benefits through reduced import bills and supporting domestic ethanol production.