Brazil increases ethanol blend from E30 to E32; expected to reduce gasoline imports by 800 million litres per year
Brazil has temporarily increased its mandatory gasoline ethanol blend from E30 to E32 for 180 days to enhance energy security and reduce gasoline imports. The move is expected to cut imports by 800 million litres and boost ethanol demand by about 1 billion gallons annually.
Brazil has raised the mandatory ethanol blend in gasoline from 30% ethanol to 32% ethanol. Brazil’s National Energy Policy Council (CNPE) said the change will initially be in effect for 180 days but could be extended.
The measure aims to increase energy security while reducing dependence on imported gasoline. UNICA, the Brazilian sugarcane industry association, predicts the move to E32 will reduce gasoline imports by 800 million litres per year, and increase domestic demand for ethanol by approximately 1 billion gallons per year.
The temporary move to E32 marks the second time in less than a year Brazil has increased its ethanol blend rate. The government in June 2025 announced plans to increase the mandatory blend of ethanol from 27% to 30%. That change became effective Aug. 1, 2025.
Brazil’s ethanol industry is well positioned to meet increased ethanol demand. UNICA is currently expecting ethanol production to increase by 4 billion litres this year due to the startup of new corn ethanol plants and expanded production by existing sugarcane ethanol facilities.
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Source : ChiniMandi
