Chile weighs ethanol-gasoline blend as government seeks cheaper fuels amid fiscal strains
The proposal could cut fuel supply costs by about $107 million a year and help Chile phase out MTBE, ministry officials said.
- On Thursday, September 17, 2026, Chile began considering E10 ethanol-blended gasoline to mitigate spiking oil prices straining the economy, according to ministry documents seen by Reuters.
- Brent crude oil traded at over $105 a barrel on Wednesday, up from about $73 before the war; President Jose Antonio Kast's administration stopped fully cushioning pump prices as MEPCO strained public finances.
- The energy ministry drafted a proposal to shift to E10 blending that could reduce annual fuel supply costs by approximately $107 million. State oil company ENAP would need to invest about $10.8 million to adapt refining and storage infrastructure.
- Chile relies on imports for 85% of its gasoline supply and lacks domestic production capacity to support an ethanol industry. The ministry conceded that such a move "replaces one import dependency with another."
- Ethanol-Gasoline blends are widely used across Latin America, where Brazil's $20 billion industry uses up to 30% ethanol. Chile aims to achieve a 10% blend, potentially increasing to 15% by 2030.
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While the Ministry of Energy analyses the implementation of E10 gasoline to diversify suppliers, a recent international research evaluated how vehicles react to the different proportions of this biofuel.
Chile is considering switching to gasoline with 10% ethanol (E10) content, which could create additional demand for corn as the main raw material for bioethanol production. The country's energy ministry has prepared a corresponding proposal amid high crude oil prices and rising fuel import costs. The government estimates that the use of E10 can reduce the cost of supplying the country with fuel [...] The post Chile may switch to gasoline with 10…
According to data from the Organization of Petroleum Exporting Countries, Opep, Chile imported 181,000 barrels of crude oil per day in 2025.
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