Mexico is evaluating future pathways for ethanol-blended petrol as it reassesses its long-term fuel strategy, amid changing global policies and renewed focus on biofuels to reduce dependence on crude oil imports.
The review follows recent international developments in ethanol use, with policymakers examining how different blending levels could impact the country’s energy mix, fuel efficiency, and environmental goals, biofuels international reported.
Mexico had earlier supported E10 fuel, with companies such as Wascon Blue investing in 10 per cent ethanol blends to offer higher-octane and cost-effective petrol. However, a regulatory revision in 2021 lowered the permitted ethanol content to 5.8 per cent, affecting the viability of E10 and leading industry stakeholders to call for its reinstatement as the national standard.
Global trends are also shaping Mexico’s approach. Countries that have moved towards E20 blends have reported mixed results. While higher ethanol content can help lower emissions, studies suggest it may reduce fuel efficiency by 2 to 5 per cent and could lead to long-term engine wear in vehicles not designed to handle such blends.
As discussions continue, policymakers are balancing the potential environmental gains against infrastructure readiness and consumer concerns. Industry leaders have emphasised that a clear and consistent ethanol policy, whether based on E10, E20, or a phased transition, is crucial for attracting investment, ensuring supply chain stability, and strengthening energy security.
The outcome of Mexico’s policy review is expected to play a key role in shaping the country’s biofuel sector in the coming years.
