The Brazilian government has approved an increase in the mandatory blending percentages of biofuels in fossil fuels, effective August 1, 2025. The National Energy Policy Council (CNPE) authorized raising the ethanol content in gasoline from 27% to 30%, known as E30, and the biodiesel content in diesel from 14% to 15%, referred to as B15. This decision aims to mitigate the impact of rising oil prices amid instability in the Middle East, reduce dependence on imported gasoline, and support the domestic biofuel industry. The government projects that the changes could lower gasoline prices by up to 0.20 Brazilian reais per liter, with some sources citing a potential reduction of approximately 0.11 reais per liter. Additionally, the increased biofuel blend is expected to contribute to cleaner fuel emissions. The measures were announced following an extraordinary CNPE meeting involving the Ministry of Mines and Energy and have been welcomed by market participants, although concerns about regulatory enforcement remain.