What’s stabilising Brazil’s gasoline prices? Ethanol

Sao Paulo: As the war in Iran rattles global oil markets, Brazil is partially protected 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 tanks with 100 percent sugarcane-based ethanol or a gasoline blend containing 30 percent biofuel.

Brazil’s massive dual-fuel fleet of vehicles that can run on any combination of ethanol and gasoline is unique in its scale. The program, launched in 1975 during the country’s military dictatorship, has evolved successfully in democratic times to reduce dependence on foreign oil.
As the latest conflict involving Iran, the United States and Israel enters its fifth week, countries such as India and Mexico are looking to the Brazilian model as a blueprint for energy security. While consumers around the world are facing steep price increases, gasoline prices in Brazil rose only 5% in March compared to 30% in the United States.