increase in the mixture of ethanol in gasoline

In the 160th episode, Pedro Rodrigues analyzes the consequences and challenges of increasing the percentage of ethanol added to gasoline and the increase in biodiesel in diesel

O Poder360in partnership with the (Brazilian Infrastructure Center), presents the new episode of the program Infra em 1 Minuto. The oil and gas expert partner at the consultancy, comments on the government’s proposal to increase the mixture of ethanol in gasoline from 30% to 32% and the debate about increasing biodiesel in diesel, which is at 15%.

Rodrigues highlights benefits such as less dependence on imports and environmental gains, but warns of challenges in distribution and the risk of unfair competition if supervision fails, which could distort the market and compromise public policy.

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Watch the video (2min03s):

According to the expert, there are 3 main positive impacts. The 1st is the reduction of Brazilian dependence on imported fuels, a factor that gains relevance in a scenario of geopolitical tensions and oil volatility. The 2nd is the environmental gain, with lower emissions from the fleet without the need to change engines. The 3rd is the strengthening of one of the cleanest transport matrices in the world.

Despite this, the Infra em 1 Minuto expert states that the implementation of the new rule depends heavily on the distribution system. It is the distributors who assume the cost and logistical complexity of taking the fuel with a new mixture to around 45,000 stations spread across the country and, subsequently, to the final consumer.

The expert also warns that, without adequate supervision, there is room for unfair competition. In this scenario, those who comply with the rules bear the costs of the new mixture, while irregular agents can sell off-spec fuel at lower prices, distorting the market and weakening public policy.

Read the posts about the other episodes of the Infra program in 1 minute: