Meeting on increasing ethanol in gasoline to 32% is canceled at the last minute by the government

The government canceled at the last minute the meeting of the National Energy Policy Council (CNPE) scheduled for this Wednesday (8/7), which would have among the main topics the increase in the mixture of ethanol in gasoline and the moratorium on biodiesel imports.

According to the axis agency, the decision came from the Civil House, without the consent of the Minister of Mines and Energy, Alexandre Silveira (PSD/MG). The ministry even officially announced the holding of the meeting and planned a press conference for Wednesday morning.

On the agenda was the increase in the mandatory blend of anhydrous ethanol in regular gasoline, from the current 30% to 32% – the so-called E32 – in addition to the draft that would establish that all biodiesel used in the mandatory blend comes from national mills. With the cancellation, the E32 remains undefined, after months of successive postponements.

The increase is a promise from the Planalto to the mill owners and, if approved, would take effect in August. The proposal gained strength in the first half of the year as an energy security measure, in the face of the shock in oil prices caused by the war in the Middle East, and has strong support from segments linked to agribusiness. The government estimates that the measure would reduce around 500 million liters per month in gasoline imports.

Successive increases

E32 would be the next step to E30, in force since August 1, 2025. On that occasion, the CNPE raised the mixture from 27% to 30% and the minimum octane rating (RON) of regular gasoline went from 93 to 94. The government projected a drop of up to R$ 0.20 per liter at the pump – which, according to data from the ANP and Petrobras, was not confirmed significantly in the following months.

Unlike the E30, preceded by tests by the Mauá Institute of Technology in 2025, the E32 would not have a new round of tests. Thus, experts say it is not possible to rule out negative impacts of the change on old vehicles, motorcycles and imported models. There is also a contradiction pointed out by analysts: the government has announced the beginning of the withdrawal of fuel subsidies, but maintains as a justification for the E32 the reduction of exposure to global prices.

The biodiesel moratorium, on the other hand, faces opposition from distributors, gas stations and importers. The Brazilian Association of Fuel Importers (Abicom) sent this week a letter to the members of the CNPE in defense of the opening of the market to imports.