Mexico is considering increased use of ethanol in gasoline as part of the new regulatory framework planned by the Ministry of Energy (Sener).

Sener is currently attempting to create a regulatory framework for biofuels, but it is unclear how the updated regulations will address ethanol blending.

Ethanol in gasoline

Mexico does not blend ethanol into its gasoline. However, incorporating ethanol could reduce the trade deficit with the United States. It would also decrease dependence on MTBE, an old additive with serious environmental concerns. This compound has raised concerns about groundwater contamination. In fact, it has not been used significantly in the United States since 2005.

In contrast, ethanol replaces MTBE in the US fuel matrix. It provides higher octane, costs less, and has a more favorable environmental impact.

Meanwhile, fuel consumption in Mexico is growing year after year. But there are still regulatory barriers that slow down the use of ethanol. In 2020, Mexico imported 74% of the fuels it consumed. And since 2025, the United States has supplied about 63% of the total volume.

Mexico currently consumes more than 800,000 barrels of gasoline per day. Thus, demand far exceeds domestic production. It should be noted that ethanol use began in the 2000s. However, the country failed to consolidate a national blending policy comparable to that of other countries in Central and South America.

According to the U.S. Grains and Bioproducts Council (USGBC), ethanol generates benefits for both trading partners. For Mexico, it would open the door to higher sustainability goals and lower energy dependence.

In the case of the United States, greater access through a national E10 blend would create a market of 1.2 billion gallons, equivalent to 425 million bushels. It would also reduce the bilateral agricultural trade deficit—estimated at $12.2 billion—by 16.7 percent.

Trade 

Ethanol exports to Mexico have fluctuated over the past five years. Even so, they have reached record levels of 70 million gallons. However, the product enters the country only for industrial use and not as automotive fuel.

In 2017, the Energy Regulatory Commission (CRE) authorized the E10 blend outside metropolitan areas. But in 2020, the Supreme Court reversed that rule. It also reduced the blending standard to 5.8% and banned ethanol in Mexico City, Monterrey, and Guadalajara.

Since then, the energy sector has undergone profound regulatory change. Meanwhile, the Ministry of Energy (Sener) is working on a new framework for biofuels. It is still unclear how it will include ethanol blending or whether it will expand its use in road transport.

The USGBC proposes to reinstate E10 within the biofuel framework. It suggests using NOM-016-CRE as a basis and removing restrictions in the three main cities. This would allow Mexico to move towards a more flexible scheme that is aligned with international standards.