Chile Eyes Ethanol-Gasoline Blend Amid Soaring Oil Prices

Chile is considering adopting an ethanol-gasoline blend as oil prices continue to soar. The government aims to reduce fuel supply costs by approximately $107 million annually through a proposed E10 ethanol blending, mixing 10% ethanol with gasoline.

The energy ministry has drafted a proposal to shift to the new blend, citing the potential benefits of reducing dependence on imported crude oil and lowering carbon emissions. Chile imports around 181,000 barrels per day of crude oil, mostly from the US, and has been struggling to cope with the recent price increases.

Oil prices have risen significantly since the start of the U.S.-Israeli war on Iran, with Brent crude trading at over $105 a barrel on Wednesday. In comparison, it was around $73 a barrel before the conflict began.