Apr 14, 2026
Brazil to Increase Ethanol Mixture from E30 to E32, Eventually E35
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Currently, Brazil's gasoline is E30 and that is expected to increase to E32 during the first half of 2026 according to the Minister of Mines and Energy, and eventually to E35 by the end of the year. The announcement came as Brazil faces challenges with petroleum-derived fuels due to the price hike from the war in Iran. The mixture increased from E27.5 to E30 at the start of 2026.
The increase in the mixture of ethanol in gasoline is expected to increase the percentage of sugarcane processed for biofuel. Approximately 54% of the sugarcane in 2026/27 will be used to produce ethanol compared to 51% last year. Brazil is expected to produce approximately 44.5 billion liters of ethanol in 2026/27, which represents a growth of approximately 15% compared to the previous season. The corn ethanol sector alone is expected to increase its production by 2 billion liters in 2026.
The Sugarcane Industry Union (Unica) and the National Union of Corn Ethanol (Unem) have indicated that both sectors are well positioned to meet the added demand for ethanol. Increasing the mixture from E30 to E32 would require an additional 2 billion liters of ethanol. This increase in the mixture should help address the volatility of international oil markets.
Ethanol has helped to protect the Brazilian consumer. While gasoline tracked the oil hike in international markets, biofuel kept prices stable at the pump.