EPE publishes August 2026 edition of Brazil’s Short-Term Fuel Market Outlook

August 21st, 2026

According to the most recently published edition of Brazil's Short-Term Fuel Market Outlook, Brazilian liquid fuel and LPG demand is forecast to increase 3.6 billion liters in 2026 and another 3,7 billion liters in 2027.

Economic growth and positive job market performance, income transfer policies, and government programs should contribute to the continuous increase in fuel consumption throughout this period.

Despite the effects of the war on the escalation of international prices, domestic demand is not expected to be impacted in the short term.

These indicators, combined with positive projections for the grain harvest, support an increase in diesel demand, which is expected to reach 72,6 billion liters in 2026, highlighting the strength of agribusiness, logistics, and the national industry.

In the Otto cycle fuels segment, consumption continues an upward trajectory, expected to reach 65,1 billion liters in 2026. Ethanol is an important alternative for ensuring energetic security, particularly in the context of international conflicts. The positive outlook for the 2026/27 sugarcane harvest and the solid growth in corn ethanol production strengthen the supply of biofuels, ensuring energy security. The expectation of even higher demand for hydrous ethanol in the second half of the year is increasing the share of renewable fuels.

The aviation sector, in turn, is experiencing a new phase of expansion: jet fuel demand in 2027 is expected to exceed, for the first time, the historic record of 2014, reaching levels above 7.5 billion liters, growing sustainably.

Meanwhile, LPG shows growth prospects, supported by increased disposable income, low unemployment, and the Gás do Povo Program. Added to this are opportunities for market evolution and expansion.

​Click here and read the August 2026 edition.​


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