Brazil has found a sweet way to protect itself from rising world oil prices. Here's how As tensions escalate in the Middle East, Brazil has emerged as a notable exception to the global surge in fuel prices, thanks to its long-standing reliance on ethanol. The country’s dual-fuel infrastructure, which allows vehicles to run on a mix of ethanol and gasoline, has provided a buffer against volatile oil markets. This system, established in 1975 during Brazil’s military dictatorship, has evolved into a cornerstone of the nation’s energy strategy, reducing dependence on foreign oil and offering a cleaner alternative to fossil fuels. The program’s success is evident in Brazil’s recent fuel price trends. While global markets have seen gasoline prices rise sharply—by 30% in the United States in March—Brazil’s prices increased by only 5% during the same period. Analysts attribute this stability to a mature domestic biofuels industry that enables the country to mitigate the impact of geopolitical shocks without facing severe fuel shortages. The Brazilian Sugarcane Industry Association’s president, Evandro Gussi, emphasized that Brazil’s unique position is rooted in its ability to offer a viable alternative to traditional gasoline. The timing of this advantage coincides with a record ethanol production cycle. Brazil’s next sugarcane harvest, set to begin in early April, is projected to yield 30 billion liters of ethanol—4 billion more than the previous year’s output. This surge is significant, as it equals the total amount of gasoline Brazil imported in 2024. The expansion of ethanol production has been supported by both large-scale agribusinesses and smaller family farms, such as Bom Retiro, a 40-square-kilometer operation founded in 1958.#brazil #sao_paulo #ethanol #unicamp_university #lula_da_silva
