Gasoline More Bitter than Sweet | Gasolina más amarga que dulce

By Francesco Zaratti:

Since 2018, Bolivia has marketed the so-called “green gasoline,” a blend of base gasoline with anhydrous ethanol, a byproduct of sugarcane, within the framework of an agreement that obliges YPFB to purchase ethanol from sugar mills and mix it with domestically produced or imported gasoline.

The virtues of this program have been widely propagandized: improved octane levels; reduced gasoline imports (which represent nearly 60% of consumption); and all the social advantages of supporting a national industry.

The criticisms are also well known: questionable monetary savings, deforestation to expand agricultural production, the use and abuse of fertilizers and pesticides associated with monocultures, risks to food security, and engine damage, mainly in older models.

This controversy between supporters and detractors of agrofuels has recently resurfaced amid efforts to identify the causes of poor gasoline quality that has damaged motorcycle and automobile engines in certain regions of the country.

Authorities (and users) have pointed, among other causes, to the ethanol blend (currently up to 12%), which can facilitate the dissolution of rubber components responsible for failures in injection systems, and they have announced a reduction in the percentage of this additive.

Beyond the ridiculous response from the sugar mills (which attempted to demonstrate—by dividing the volume of ethanol delivered by the volume of gasoline marketed—that the blend did not reach 12%, but not even 9%), it is necessary to reorganize this program with at least three urgent measures:

  • Adjustment to international standards: Reduce the blend to less than 10%. This is the maximum limit in the United States and exceeds what is permitted in the European Union. It is imperative that vehicle importers break their silence and enforce the technical specifications that protect their customers.
  • Freedom of choice at the pump: Users should not be forced to consume alcohol. A menu of three options is proposed: the “green,” a low-octane economical option (RON 88) without alcohol, and a pure “premium” (above RON 92). In a freer market, wholesalers should decide the convenience of blending.
  • Looking to external markets: The State must assist sugar mills in recovering their alcohol export markets. This would allow the industry to continue growing and generating foreign currency without compromising the health of Bolivia’s vehicle fleet.

In sum, the ethanol program now requires more than ever transparency and adaptation to technical reality.

A Lenten and fraternal embrace,

Francesco

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