What's stabilising Brazil's gasoline prices? Ethanol

Sao Paulo: As the war in Iran rattles global oil markets, Brazil is partially shielded by a decades-old buffer against shocks that is both cheap and environmentally friendly.

Tens of millions of drivers here can choose between filling their tank with 100 per cent sugarcane-based ethanol or a gasoline blend that contains 30 per cent of biofuel.

Brazil's massive dual-fuel fleet - consisting of vehicles capable of running on any combination of ethanol and gasoline - is unique in its scale. The program, launched in 1975 during the country's military dictatorship, has successfully evolved in democratic times to reduce dependency on foreign oil.


As the latest conflict involving Iran, the United States and Israel enters its fifth week, nations like India and Mexico are looking at the Brazilian model as a blueprint for energy security. While consumers worldwide face steep price hikes, Brazilian gasoline prices rose just 5% in March compared to 30% in the US.