The government is increasing the ethanol blend in gasoline to 30% and sees biofuels as a shield against oil price fluctuations.
The measure takes effect on August 1st and strengthens the ecological transition, encourages energy self-sufficiency, and helps reduce fuel prices.
247 - The National Energy Policy Council (CNPE) approved, this Wednesday (25), the increase in the mandatory blend of ethanol in gasoline, which will go from 27% to 30%. It also authorized an increase in the amount of biodiesel in diesel, from the current 14% to 15%.
The new percentages will take effect on August 1st. The council meeting was attended by President Luiz Inácio Lula da Silva and Minister Alexandre Silveira.
According to the Ministry of Mines and Energy, with the new 30% ethanol blend in gasoline, Brazil will once again be self-sufficient in gasoline after 15 years. It is estimated that the price of fuel could fall by up to 20 cents at the pumps. The federal government expects investments of over R$ 10 billion and the creation of 50 jobs with the change.
"The implementation of E30 [ethanol] and B15 [biodiesel] reduces Brazil's dependence on fossil fuels, decreasing the need for imports, especially at a time of uncertainty in the global market. The measures also expand the use of renewable fuels produced in Brazil, strengthening national production and contributing to the reduction of emissions and the economic development of the country," says a statement released by the ministry.
Tests conducted by the Mauá Institute of Technology indicate that the E30 is safe and can be adopted immediately without causing damage to vehicles or consumers.
The Parliamentary Front for Biodiesel (FPBio) celebrated the measure, arguing that it protects Brazil from external shocks, regulates food prices, and will enable investments of R$ 200 billion in the sector.
Prices - Oil prices rose nearly 1% on Wednesday, recovering from a sharp drop earlier in the week, as data showed relatively strong demand in the United States and investors assessed the stability of a ceasefire between Iran and Israel.
Brent crude futures closed 0,8% higher at $67,68 a barrel, while U.S. West Texas Intermediate (WTI) crude ended 0,9% higher at $64,92, both recovering some of the 13% losses recorded earlier in the week.
After US President Donald Trump announced the ceasefire on Tuesday, Brent closed at its lowest level since June 10 and WTI ended at its lowest level since June 5, due to reduced supply risk in the Middle East. (With agencies).
