Jul 25, 2023

Brazil May Increase Ethanol Blend in Gasoline From 27% to 30%

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The Brazilian government is considering increasing the percentage of ethanol blended into gasoline from the current 27% (E27) to 30% (E30). The increased ethanol blend would reduce gasoline consumption in Brazil by approximately 107.6 million liters per month.

In 2022, Brazil imported 31.4 billion liters of gasoline which was the most since 2017 according to the Brazilian National Agency of Petroleum, Natural Gas, and Biofuels (ANP). Based on gasoline consumption in 2022, the increased ethanol blend would reduce Brazil's gasoline imports by approximately two medium size tankers per month.

The increased ethanol blend would reduce Brazil's dependence on imported gasoline and minimize the risk of international price variations. The increased use of ethanol could eventually help Brazil become self-sufficient in gasoline production. It would also help to reduce carbon emissions.

Even though Brazil has abundant offshore petroleum reserves, a lack of refining capacity forces the country to import gasoline and diesel fuel. Russia is the largest supplier of diesel imports to Brazil.

The Brazilian Minister of Mines and Energy stipulated that the increase would be dependent on technical studies as to its feasibility. Nearly all new vehicles in Brazil are "flex fuel" so an increased blend of ethanol into gasoline would not pose any problems for newer vehicles. The concern is for older vehicles that are not "flex fuel."