Brazilian Government Expected to Announce Ethanol Blend Increase to 32% in Gasoline

Brazil's Minister of Mines and Energy, Alexandre Silveira, is expected to announce this Friday the government's decision to increase the mandatory ethanol blend in gasoline to 32% (E32). This measure will be formally addressed at the next meeting of the National Energy Policy Council (CNPE), scheduled for early May. The announcement is anticipated to take place at the opening ceremony of the 2026/27 Minas Gerais Sugar and Ethanol Harvest in Uberaba (MG), which is the minister's electoral base. This was the same location Silveira chose last August to announce the government's project to raise the ethanol content in gasoline to 30%. The decision to increase the blend ratio must be supported by comprehensive technical viability studies, focusing on aspects such as vehicle performance, pollutant emissions, and potential drivability issues. Furthermore, the government is also considering the macroeconomic effects, aiming to prevent any negative impact on inflation. Consequently, the blending schedule outlined in the Future Fuel Law may not always be strictly followed. This legislation stipulates that an increase in the mandatory percentage of ethanol in gasoline should only be approved after verifying the technical feasibility of the blend for automotive vehicles. Earlier this month, Minister Silveira stated that tests for E32 would be completed within 60 days, with a "strong possibility" of increasing the mandatory blend within the first half of this year.