Government postpones meeting on mixing ethanol in gasoline

The federal government once again postponed the meeting that was supposed to establish an increase in the mandatory percentage of anhydrous ethanol mixed with gasoline. The expectation was that the measure would be approved during a meeting of the CNPE (National Energy Policy Council), scheduled for 9 am, at the MME (Ministry of Mines and Energy), in Brasília.

After the meeting, the head of the department, Alexandre Silveira, would give an interview to the press to detail the collegiate's decisions, in particular the approval of the increase in the ethanol blend from the current 30% to 32%, a measure known in the sector as E32, in gasoline.

The increase in the ethanol blend was scheduled to be analyzed by the CNPE since May, but three meetings that would deal with the topic were canceled or postponed due to scheduling issues.

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The expectation was fueled by President Luiz Inácio Lula da Silva himself, who publicly announced, back in April, that the government would increase the ethanol blend to 32% and the biodiesel blend to 16%, even before the council's deliberation.

Although the increase to E32 has support within the government and the sugar-energy sector, the discussion also underwent technical evaluations. When Brazil increased the ethanol mixture to 30%, in 2025, tests were carried out to verify the performance of the vehicles and the compatibility of the new composition.

To increase from 30% to 32%, the Ministry of Mines and Energy argues that there is no need to repeat this battery of tests, an understanding that generated questions from part of the fuel sector and motivated new technical analyzes before the vote.

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On the other hand, the defense of the increase gained strength after the escalation of tensions in the Middle East, which raised international oil prices and reignited concerns about Brazil's dependence on imported gasoline.

The government started to treat the measure as a way to increase the country's energy security, strengthen national production of biofuels and reduce exposure to external market fluctuations.

The possibility of increasing the share of ethanol in gasoline was opened up by the Future Fuel Law, which established new instruments to encourage the decarbonization of the transport sector and expanded the permitted range for the mandatory mixture of anhydrous ethanol in gasoline, from 22% to 27% to a range between 22% and 35%.

According to estimates by the Ministry of Mines and Energy, the adoption of E32 could reduce the need to import gasoline by around 450 million liters per year.

The ministry also calculates that the measure will prevent the emission of approximately 552 thousand tons of carbon dioxide equivalent (CO₂e).

Although the government presents the increase in ethanol blends as a measure aimed at energy security and the transition to cleaner fuels, the announcement also occurs in a context of strong political weight from inflation.

With just a few months to go before the elections, initiatives capable of reducing pressure on the price of gasoline could help sustain President Lula's popularity, as the cost of fuel is one of the indicators most noticed by consumers.

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Source: CNN