Chile Considers E10 Gasoline Blend to Cut Fuel Costs and Oil Price Exposure
Chile is exploring the introduction of a 10% ethanol blend in gasoline to reduce fuel supply costs and limit the impact of higher international oil prices. According to Ministry of Energy documents, the proposed E10 blend could generate annual savings of around $107 million in fuel supply costs.
The country currently relies heavily on imported fuels, with OPEC data showing that Chile imported around 181,000 barrels of crude oil per day in 2025. The recent rise in global crude prices has added pressure on the domestic fuel system, strengthening the case for diversifying fuel sources.
E10 gasoline contains 90% gasoline and 10% ethanol, a blend already used in several Latin American markets. Chile does not currently have a national ethanol blending mandate, but limited domestic ethanol production and insufficient agricultural land for large-scale production have been among the constraints to establishing a domestic ethanol industry.