Brazil's President Lula pushes higher biofuel blends in gasoline and diesel

The National Energy Policy Council (CNPE) approved a temporary increase of the ethanol blend in gasoline from 30% to 32%, creating the E32 mixture. The measure will be in force for an initial 180‑day period, with the possibility of a further 180‑day extension, and is aimed at reducing gasoline imports, strengthening energy security and expanding renewable fuel use. Technical evaluations found the higher blend does not significantly affect vehicle performance, even in non‑flex engines.

At the same time, the government and biofuel sector are urging a raise in the mandatory biodiesel content in diesel from the current 15% (B15) to 17% (B17) and eventually to 20%‑25% (B20‑B25). Tests conducted by the Instituto Mauá de Tecnologia (IMT) in São Caetano do Sul assess blends ranging from B16 to B25, with industry associations such as APROBIO, Aprobio and Abiove advocating for immediate adoption of B16 and B17.

President Luiz Inácio Lula da Silva visited IMT on 13 July 2026, reviewing the biodiesel tests alongside Energy Minister Alexandre Silveira. He also inspected the UGEE1000BR, Brazil’s first ethanol‑fueled turbine prototype, at the Instituto de Aeronáutica e Espaço (IAE) in São José dos Campos, highlighting the country’s push for renewable‑energy technologies. The initiatives are framed as part of Brazil’s “Fuel of the Future” law, targeting reduced dependence on imported petroleum, lower emissions and broader development of the agribusiness‑based biofuel industry.