On June 25, Brazil's National Energy Policy Council (CNPE) approved an increase in the required biofuel blend ratios for gasoline and diesel, set to take effect from Aug 1. The CNPE is the government body responsible for formulating and determining national energy policies. Originally aimed at improving fuel self-sufficiency, the blending of bio-based materials into conventional fuels is now also expected to contribute to reducing carbon dioxide emissions and revitalizing domestic industries.

The ethanol blend in gasoline - derived primarily from sugarcane - will rise from 27% to 30% (E30), while the biodiesel blend in diesel will increase from 14% to 15% (B15). Following the implementation, gasoline prices are expected to fall by up to 0.20 reais per liter (approximately 3.6 US cents). According to current legislation, the ethanol blend in gasoline could eventually be raised to as high as 35% in the future.