RIO DE JANEIRO, April 28 (Reuters) - Brazil will create a working group to study raising the mandatory blend of ethanol content in gasoline to 30%, Mines and Energy Minister Alexandre Silveira said on Friday.
Speaking at a sugar and ethanol industry event in Minas Gerais, Silveira said the potential increase the biofuel blend should be predictable and transparent, calling for a "permanent dialog."
Brazil currently sets standard ethanol content in its gasoline at 27%.
The government would first have to raise the ceiling of the permitted ethanol content in gasoline, which currently ranges from 18% to 27.5%, but Silveira said the working group will also study increasing the ceiling "very responsibly."
Brazil has one of the world's largest ethanol industries, and most cars in the country can run on 100% biofuel made from sugarcane or corn.
Earlier, Vice President Geraldo Alckmin told Reuters that Brazil's ability to produce and sell hybrid cars that can run on 100% ethanol is a huge asset for its auto industry as global economies push for decarbonization to tackle climate change.
"Increasing the ethanol content will undoubtedly contribute to our country's energy security, by reducing gasoline imports," Silveira added at the event, "and to the energy transition, by reducing greenhouse gas emissions."
Brazil does not produce as much gasoline as it consumes and relies on imports to fulfill domestic demand. (Reporting by Marta Nogueira; Writing by Peter Frontini; Editing by Chris Reese and Sarah Morland)
