The Brazilian government will proceed with the mandatory increase of the anhydrous ethanol blend in gasoline from 30% to 32% (E32) on August 1, a policy shift designed to reduce dependency on imported fuel and create immediate, mandated demand for the domestic biofuel sector. The National Energy Policy Council (CNPE) approved the temporary increase for 180 days, a move that provides a significant tailwind for sugar and ethanol producers like Raízen (RAIZ4) and São Martinho (SMTO3) despite a legal challenge from federal prosecutors.