Gasoline with 32% ethanol should be R$ 0.03 cheaper, says minister.

The Minister of Mines and Energy (MME), Alexandre Silveira, stated this Tuesday (14) that the temporary increase in the amount of anhydrous ethanol mandatorily mixed with gasoline should reduce the price per liter of fuel by R$ 0.03. The percentage of alcohol will increase from 30% to 32% starting August 1st. “It reduces the price by R$ 0.03 [per liter], but, mainly, it decreases our dependence on gasoline imports,” said Silveira. In an interview with journalists, the minister stated that the decision announced by the National Council for Energy Policy (CNPE) this morning is part of the strategy to reduce national dependence on gasoline imports, taking advantage of the national capacity for biofuel production. The initial validity of the measure is 180 days, and at the end of this period, it may be extended for another 180 days. The minister, however, does not rule out the technical feasibility of the new content (E32) soon becoming permanent. “The 32% transitional measure is an excess of caution,” stated Silveira. The minister affirmed that the increase in the percentage of ethanol in gasoline was decided based on the results of tests conducted by the Mauá Institute of Technology, which demonstrated that the mixture does not compromise the performance of light vehicles and motorcycles, even those without flex-fuel engines. “We are completely confident in moving forward to E32, and the transitional measure is just a way to be cautious. Within 180 days, we will see what is happening with regard to ethanol,” added the minister. Silveira explained that the National Agency of Petroleum, Natural Gas and Biofuels (ANP) will continue coordinating the necessary tests to verify the effects of even higher levels of ethanol mixed with gasoline, such as E35 (35%). “The tests will continue, naturally. Which doesn't mean that [even if the results indicate the efficiency of the mixture] we will approve increasing the amount of ethanol in gasoline. That also depends on an economic assessment. When it's economically viable, we'll increase it. If it gets worse, we'll decrease it,” the minister explained.

This text was translated by machine from Brazilian Portuguese.