Cheaper Gasoline? Government Increases Ethanol Quantity and Promises Relief for Uber and Taxi Drivers. R$ 150 Less for Those Driving 7,500 Km Per Month, Says Minister

Written by Alisson Ficher

Published on 26/06/2025 at 14:51

Updated on 26/06/2025 at 16:51

Governo eleva mistura de etanol e promete queda no preço da gasolina a partir de agosto. Economia de até R$ 1.800 por ano para motoristas.

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New Ethanol Blending Rule Promises to Reduce Gasoline Prices and Boost the Biofuels Sector with Job Creation and Lower Dependence on Imports.

The federal government approved, in an extraordinary meeting of the National Energy Policy Council (CNPE) on Wednesday (June 25, 2025), the increase of the mandatory anhydrous ethanol blending in gasoline from 27% to 30% (E30), and of biodiesel in diesel from 14% to 15% (B15).

The new rules will come into effect on August 1 and are expected to reduce gasoline prices by up to R$ 0.11 per liter, according to the Ministry of Mines and Energy — which could represent savings of R$ 0.02 per kilometer driven for drivers traveling 7,500 km monthly, totaling R$ 150 in relief per month or R$ 1,800 per year.

Impact of New Fuels Policy on the Geopolitical Scenario

The decision comes amid instability in the Middle East, which has raised international oil prices, especially after tensions between Iran and Israel.

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Economic and Fiscal Benefits of the Measure

Cost Reduction for Drivers: the MME estimates savings of R$ 1,800 per year for those traveling 7,500 km per month, with a reduction of R$ 0.02 per km.

Fuel Prices at the Pump: the drop in price per liter may vary between R$ 0.11 and R$ 0.13, according to data from Broadcast Agro and the newspaper O Globo.

Impact on Diesel: the increase in biodiesel (B15) is expected to have a negligible effect on the final diesel price at gas stations, with an estimated variation of R$ 0.01 per liter — offset by adjustments in the international oil price.

Advancement in Self-Sufficiency: the MME expects to avoid the import of 760 million liters of gasoline per year, covering this volume with the production of about 1.36 billion liters of ethanol — paving the way for the country to become a net exporter of around 700 million liters annually.

Job Creation and Incentives: in addition to investments in plants, the increase in B15 is expected to enhance the production of soybean meal, generating protein for the animal production chain, and create about 17,200 direct jobs.

Emission Reduction and Technical Feasibility

Environmental Benefits: E30 can decrease gasoline’s carbon footprint by up to 2.8%, a reduction equivalent to 3 million tons of CO₂ per year.

The increase in biodiesel B15 could cut 1.2 million tons of emissions annually.

Technical Tests and Legal Limits: studies by the Mauá Institute of Technology (IMT), validated with support from Anfavea, Sindipeças, Abeifa, and Abraciclo, have confirmed the technical feasibility of E30 without performance loss in flex vehicles.

Brazilian legislation allows for a mix of up to 35% of ethanol in gasoline, provided technical neutrality is proven.

History of Ethanol and Public Policies

Brazil has been a pioneer in the use of ethanol as a biofuel since the late 1970s, with the launch of the National Alcohol Program (Proálcool).

The obligation to blend anhydrous ethanol into gasoline peaked in the 2000s, reaching 27.5% since 2015.

Flex-fuel vehicles, introduced in 2003, allowed the widespread adoption of this type of fuel in the national market.

The initiative to raise the blend to 30% aligns with the policies of RenovaBio (Law 13.576/2017), which aims to reduce emissions, stimulate energy efficiency, and ensure predictability for the sector.

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Common Questions About the New Measure

Why Does Mixing More Ethanol Reduce Gasoline Prices?

This happens because anhydrous ethanol has a lower tax burden than Type A gasoline, making it a cheaper option for consumers.

Was the Increase to 30% Already Expected?

Yes. The current legislation already allows for up to 35%. However, the increase was only approved after technical studies confirmed safety for engines, further spurred by the current geopolitical pressure.

Expected Results in the Short and Medium Term

Immediate Relief for Consumers: Drivers are noticing a significant decrease in cost per km driven and in the price per liter.

Stimulation of National Production: boosts the sugar-energy sector and chains related to agribusiness.

Strengthening Energy Sovereignty: reduces external dependence, especially in times of conflict in the Middle East.

Environmental Advancement: significant reduction in greenhouse gas emissions.

Do you think that the increase in ethanol blending will effectively reflect in lower prices at the pumps and bring tangible benefits to the average driver?

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Cheaper Gasoline? Government Increases Ethanol Quantity and Promises Relief for Uber and Taxi Drivers. R$ 150 Less for Those Driving 7,500 Km Per Month, Says Minister

New Ethanol Blending Rule Promises to Reduce Gasoline Prices and Boost the Biofuels Sector with Job Creation and Lower Dependence on Imports.

Impact of New Fuels Policy on the Geopolitical Scenario

Economic and Fiscal Benefits of the Measure

Emission Reduction and Technical Feasibility

History of Ethanol and Public Policies

Common Questions About the New Measure

Expected Results in the Short and Medium Term

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Cheaper Gasoline? Government Increases Ethanol Quantity and Promises Relief for Uber and Taxi Drivers. R$ 150 Less for Those Driving 7,500 Km Per Month, Says Minister

New Ethanol Blending Rule Promises to Reduce Gasoline Prices and Boost the Biofuels Sector with Job Creation and Lower Dependence on Imports.

Impact of New Fuels Policy on the Geopolitical Scenario

Economic and Fiscal Benefits of the Measure

Emission Reduction and Technical Feasibility

History of Ethanol and Public Policies

Common Questions About the New Measure

Expected Results in the Short and Medium Term

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Workers were opening a modern road in Dover when they found, 6 meters below the asphalt, a 3,500-year-old boat made of stitched oak and plant fibers.

Dissatisfied with seeing people sleeping on the street, a man named Ryan Donais started building small mobile homes so that homeless people can escape the cold, each equipped with a bed, running water, electricity, and heating.

Consumers eat six times more chicken than in the 1960s, global meat supply quadruples in 60 years, and FAO report reveals the invisible cost on the plate: livestock could drive 80% of the increase in agricultural emissions over the next decade.

An Indonesian fisherman pulls a mysterious object from the sea and discovers that it is a Chinese underwater monitoring system, part of the so-called Underwater Great Wall that Beijing uses to track submarines and unmanned vehicles in strategic straits of the region.

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