The government of Mexico published a regulation that requires a 5.8-percent blend of ethanol into gasoline sold in the country, with the exception of three major metropolitan areas of Mexico City, Guadalajara and Monterrey, reports the Washington Examiner. U.S. ethanol groups said the mandate represented an expansion of the market for renewable fuels in North America.
The trade group Growth Energy said it would work with counterparts in Mexico “to clearly demonstrate the value of ethanol to their environment, water quality, rural sector and consumers.” Mexico’s ethanol mandate goes into effect in 60 days, said the Examiner.
In the United States, the traditional blend is 10 percent ethanol into gasoline. Higher blends, E15 and E85, are available. The oil industry opposes the U.S. mandate, which guarantees renewable fuels a share of the market.
Mexico decided to ban ethanol-blended gasoline in the three cities “as part of a push to combat the worst air pollution in over a decade due to high concentrations of ozone in the atmosphere,” said Reuters last week. Studies have shown that ethanol creates more ozone than gasoline. Imports of gasoline containing ethanol would be part of opening the long-closed domestic energy sector, said Reuters. “A ban in key metropolitan areas could hinder the development of the potential market, which would concern U.S. traders.”