EPE publishes February 2026 Brazil’s Short-Term Fuel Market Outlook

​​February 23th, 2026

Brazilian liquid fuel and LPG demand is forecast to increase by 3.5 billion liters in 2026, and 3.0 billion liters in 2027, a progress that demonstrates the dynamism of economic activity and the vitality of the domestic market. 

Economic and job market growth, income transfer policies and government programs, with emphasis on the New Growth Acceleration Program (Novo PAC) and Gás do Povo, should contribute to the continuous increase in fuel consumption also throughout 2027.

This environment is driven by a favorable economic scenario: per capita GDP has been growing since 2024, inflation continues to decline, and food prices are showing consistent decreases. At the same time, Brazil is experiencing record levels of formal employment and real income, with a historic reduction in the unemployment rate, decreasing inequality, and real wage appreciation.

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

In the Otto cycle fuels segment, consumption continues on an upward trajectory, expected to reach 64 billion liters in 2026. The positive outlook for the 2025/26 sugarcane harvest and the solid growth in corn ethanol production strengthen the supply of biofuels, ensuring energy security. Demand for hydrated ethanol remains high, increasing the share of renewable fuels. 

The aviation sector, in turn, is experiencing a new phase of expansion: jet fuel demand in 2026 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 not seen in years in the sector, supported by increased disposable income, full employment, the Gás do Povo program, an initiative to promote access to clean energy for domestic use, and the expansion of available income by reforming the Personal Income Tax, for those who earns until 7,350 reais and exempting those earning up to 5,000 reais. Added to this are opportunities for market evolution and expansion. 

Click here and read the February 2026 edition.


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