Brazil to increase ethanol blend in gasoline to 30%

Brazil plans to increase the ethanol blend in gasoline from 27.5% to 30%. This decision follows technical tests showing no harm to car engines. A final approval from the National Energy Policy Council is expected soon. The new blend is projected to raise ethanol demand by 1.3 billion liters annually. This change may reduce gasoline demand and lower prices for consumers. The increase coincides with new corn processing plants starting up, boosting biofuel supply. Most of Brazil's ethanol is still produced from sugar cane. However, some sugar-cane mills may switch to ethanol production due to increased demand and higher export costs for sugar.