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[BUSINESS] · Brazil · 66 sources

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Brazil mandates 32% ethanol blend in gasoline

The Conselho Nacional de Política Energética (CNPE) approved an increase of the mandatory ethanol content in gasoline from 30% to 32% (E32) on 14 July 2024. The new blend took effect on 1 August 2024 and is initially valid for 180 days, with a possible one‑time extension of the same length. The government says the measure will cut gasoline imports by about 800‑900 million litres per year and save roughly R$ 900 million annually, while the União da Indústria de Cana‑de‑Açúcar e Bioenergia (Unica) estimates the sector can meet an extra demand of around 1 billion litres of ethanol per year.

The Ministry of Mines and Energy’s tests, coordinated with the Institute Mauá de Tecnologia, found no significant impact on vehicle performance, fuel consumption or emissions for most cars. However, the Federal Public Ministry (MPF) filed a civil public action to suspend the rule, arguing that the studies were inconclusive and that older, non‑flex or imported vehicles could suffer higher fuel consumption, corrosion and component wear.

Enforcement will be carried out by the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) with regional compliance deadlines for distributors and fuel stations. The policy is part of a broader strategy to reduce dependence on imported fossil fuels amid volatile international oil markets.

Entities

Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) · Alexandre Silveira · Anfavea (Brazilian Auto Dealers Association) · Associação Nacional dos Fabricantes de Veículos Automotores (ANFAVEA) · Brazil · Brazil (Federal Government) · Conselho Nacional de Política Energética (CNPE) · E32 gasoline · Instituto Mauá de Tecnologia · Ministério Público Federal (MPF) · Ministério de Minas e Energia · Union of Sugarcane and Bioenergy (Unica)

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