Lula confirms ethanol blend in gasoline rising to 32%

President Luiz Inácio Lula da Silva confirmed on Thursday (30/4) that the ethanol blend in gasoline will rise from 30% to 32%. He also announced the biodiesel blend in diesel increasing from 15% to 16%. The official announcement is scheduled for next week.

During the announcement event for the expansion of the Move Brasil program, featuring new financing for renewing truck and bus fleets, Lula previewed the changes to biofuels.

"If you want to decarbonize the planet, Brazil is an alternative with proven fuel. Still this week we will announce more. Going from 30% to 32%, and from 15% to 16% in biofuels. And 1% by 1% we will convince the world that if someone wants to invent renewable fuel, they don't need to spend on research. Come to Brazil and we do technology transfer," the president stated.

The proposal is on the agenda for the National Energy Policy Council (CNPE) meeting scheduled for May 7, according to the Ministry of Mines and Energy (MME). The ministry supports the measure as a strategy to reduce dependence on imported fuels, amid the oil price surge from the US and Israel war against Iran.

Lula positioned Brazil at the forefront of low greenhouse gas emission energy transition. The government also announced measures like PIS and Cofins cuts on diesel and subsidies for states to reduce ICMS, though governors have shown little interest.

Makala yanayohusiana

President Lula presents fuel tax cut bill to Brazilian Congress amid rising oil prices.
Picha iliyoundwa na AI

Government sends Congress bill to cut taxes on fuels

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President Lula's government presented a bill to Congress on April 23, 2026, allowing PIS/Cofins cuts on gasoline, ethanol, diesel, and biodiesel using extraordinary oil revenues. The measure addresses a 61% rise in gasoline import costs driven by the war in Iran, per ANP data. Officials state the cuts will be partial and temporary, possibly for two months.

Energy and Mineral Resources Minister Bahlil Lahadalia plans to expedite the mandatory blending of bioethanol into fuel as a response to global oil prices reaching US$118 per barrel. The policy aims to reduce import dependency and secure national energy supplies amid Middle East geopolitical tensions.

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The Brazilian government announced on Monday (6) extra subsidies for diesel and cooking gas, plus zeroing PIS/Cofins on biodiesel and aviation kerosene. The measures aim to curb the war in Iran's impact on fuel prices. The total estimated cost is R$ 31 billion, offset by an oil export tax.

Brazil's Ministry of Justice notified the three largest fuel distributors, Ipiranga, Raízen, and Vibra, giving them 48 hours to detail recent price adjustments. The move addresses government suspicions of abrupt hikes preceding Middle East war effects. Companies stress transparency and point to import costs and supply issues.

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Indonesia's mandatory biodiesel policy has reduced reliance on fuel imports, particularly diesel. Experts assess it could save up to 8-10 billion US dollars in foreign exchange annually. Development from B1 to B50 is targeted for completion by July 2026.

The Environmental Protection Agency announced on Wednesday it will temporarily lift federal limits on E15 and E10 gasoline blends to help lower prices strained by the Iran conflict. The waiver aims to boost fuel supply starting May 1. Gas prices have reached nearly $4 per gallon, the highest since 2022.

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Indonesia's Minister of Agriculture Andi Amran Sulaiman announced the country will stop importing diesel starting July 1, 2026, alongside implementing 50% biodiesel (B50) from palm oil. The step forms part of efforts to strengthen national energy independence.

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