Brazil moves to raise ethanol blend in gasoline to 32%

The National Energy Policy Council (CNPE) is set to vote on increasing the mandatory anhydrous ethanol content in gasoline from the current 30% to 32% (E32). The government says the measure could cut gasoline imports by up to 500 million litres per month, lower fuel prices for consumers and boost national energy security. This would be the second consecutive rise after the blend was lifted to 30% in June 2023.

Separately, a Veloe/Fipe price monitor shows ethanol became more economical than gasoline in June 2024, with the price ratio falling to 67.9% – the lowest since March 2024 and below the 70% reference point for consumer advantage. The decline follows a 4.7% drop in ethanol prices, driven by higher cane milling in Brazil’s Centro‑Sul region, while gasoline fell only 0.3%.

Together, the policy push and improved price competitiveness aim to strengthen Brazil’s biofuel sector, reduce dependence on imported gasoline and potentially ease inflationary pressure on household fuel costs.