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Government proposes to increase ethanol in gasoline to 30% aiming to reduce prices and reduce dependence on imports

Written by Bruno Teles
Published 20/03/2025 ร s 14:42
The government proposes to increase the percentage of ethanol in gasoline to 30%, reducing prices, reducing imports and boosting the biofuels sector
The government proposes to increase the percentage of ethanol in gasoline to 30%, reducing prices, reducing imports and boosting the biofuels sector

Measure could reduce the price of gasoline by up to R$0,13 per liter, reduce imports by 760 million liters and boost the biofuels sector with investments of R$9 billion

The federal government has announced a plan to increase the anhydrous ethanol blend in gasoline from the current 27,5% to 30% by 2025. The measure aims to reduce fuel prices, strengthen the national biofuel industry and reduce dependence on imports. According to the Ministry of Mines and Energy (MME), the impact could represent a drop of up to R$0,13 per liter at the pumps, in addition to stimulating investment in the sector. Increasing ethanol in gasoline is seen as a strategic step for the economy and sustainability in the country.

Technical feasibility of increasing ethanol in gasoline

The project was based on studies conducted by the Mauรก Institute of Technology (IMT), which confirmed that the new mixture, known as E30, is viable and does not harm vehicle performance. analysis was accompanied by entities from the automotive sector, such as the National Association of Automotive Vehicle Manufacturers (Anfavea), Sindipeรงas, Abraciclo and Abeifa. Studies indicate that flex engines are already adapted to this change and that older vehicles should not present operating failures with the increase in ethanol in gasoline.

Impact on the market and economy

The government expects that the increase in ethanol in gasoline will help to keep fuel prices down and reduce the need to import 760 million liters of gasoline per year. This would also boost domestic ethanol production, with an estimated growth of 1,5 billion liters per year, generating investments in the region of R$9 billion to expand the infrastructure of the biofuels sector.

For ethanol producers, the measure is seen as an opportunity for growth in the sugar and alcohol sector, while for consumers, the possibility of more affordable prices becomes a positive factor amid fluctuations in the fuel market.

Emissions reduction and sustainability

Ethanol is a renewable fuel and partially replacing gasoline with a higher percentage of this biofuel could result in a reduction of up to 1,7 million tons of COโ‚‚ per year. This volume of emissions would be equivalent to taking 720 vehicles off the streets, contributing to Brazilโ€™s environmental goals and reinforcing its commitment to international agreements to reduce pollutants. Increasing ethanol in gasoline also strengthens the transition to a more sustainable energy matrix.

The government also highlights that the legislation already allows the increase of the mixture to up to 35%, as long as there is technical proof. If the tests show even more positive results, new changes may be studied in the future.

Next steps and approval of the measure

The National Energy Policy Council (CNPE) will be the body responsible for evaluating and approving the change in the percentage of ethanol in gasoline. The final decision is expected for March or April 2025, allowing for gradual implementation throughout the year. If approved, the measure could generate a positive impact for both the consumer and the industry, consolidating Brazil as a reference in the production of biofuels.

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Bruno Teles

I talk about technology, innovation, oil and gas. I provide daily updates on opportunities in the Brazilian market. I have published over 5.000 articles on the websites CPG, Naval Porto Estaleiro, Mineraรงรฃo Brasil and Obras Construรงรฃo Civil. Any suggestions for topics? Send them to brunotelesredator@gmail.com

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