Importers of hydrocarbons in the country affirm that they will have enough ethanol to meet the demand that the 10% mixture in gasoline will generate in 2026, said the executive interviewed, who indicated that The necessary investments have already been made for the storage and production of the E10 mixture.
The change announced by the Government of implement the ethanol blending program starting August 22 but only in regular gasoline, would not affect viability or import, but rather They must adjust purchase volumes and renegotiate supply contracts, as explained.
Fausto Velásquez, manager of Uno Guatemala, SA, indicated, regarding the new Government provision, that the importing sector adapts because it is a market condition, but explained that the equipment, as well as all the adaptations and facilities for the handling of ethanol and the mixture in the terminals, They will be ready for August 22 (date announced by the authorities for the start of the mixture into regular gasoline). He added that they are only fine-tuning some details, so infrastructure is not a problem.
Regarding the supply of ethanol, he indicated that the companies have acquired inventories and will also be ready for that date.
However, he said that So far they have not brought in much volume because they are in the process of nominating the purchases they will make for the remainder of 2026 and 2027. as established by law.
He explained, for example, that The import for 2026 is the one that is beginning to arrive in the countrybut the entire amount that would be consumed this year is not yet available, because the intention is to bring ships constantly, in addition to evaluating the local purchase of ethanol.
- According to information from the MEM, three ships with loads of ethanol have arrived in the country, for a total of 6 million 157 thousand 260 gallons. Of that volume, 3.04 million gallons correspond to the Bioethanol marketer, transported on the ship Chemstar Iris; 2.11 million gallons to Puma Energy Guatemala, on the ship Venus 9; and 1.03 million gallons to Chevron Guatemala Inc., on the vessel Pretty Aki.
- For 2026, the MEM estimated that from June 30 to December 31, 2026, the country would need around 44 million gallons of ethanol, but this included the mixture necessary for the two gasolines, so the estimate will have to be adjusted only for regular gasoline.
Adjustment in purchases
With the new provision that the mixture will be used only for regular gasoline, sThey will readjust purchases because they will no longer have to purchase as much ethanol to mix it with superior gasoline, as initially planned, he added.
CONTENT FOR SUBSCRIBERS
Velásquez said that a renegotiation will have to be done with suppliers, but they do not observe complexity in the ethanol inventory, because they have not yet purchased large quantities and they are also waiting to know local availability. since the sugar cane harvest begins for the remainder of the year.
He indicated that they will enter an observation phase on the behavior of demand, because that was the part that generated the greatest uncertainty, although they had already planned purchases for this and the following year and already have identified international suppliers. Regarding national production, added that There is always that option, as long as it has a competitive price, an aspect that they have evaluated and about which there have been approaches with local producers.
Appropriate time for implementation
Asked if they see uncertainty with the Government’s new provision, he indicated that it will depend on what the government decision is, but assured that they will be respectful of what is established.
He considered that the most relevant thing for the sector is that there is an appropriate time for implementation, but he said that the most complex part was the physical facilities and indicated that they will be established as of August 21, when the operationalization phase ends.
Now It will depend on when they notify the change to restructure the ordersyes, because it will be 10% less regular gasoline that will be replaced with the purchase of ethanol.
“The most complex part for us was the investments, which are practically already ready,” which are related to storage, the facilities for mixing and delivering that product.
It can change consumption habits
The executive considers that both the decision to implement the ethanol mixture only in regular gasoline and the possibility of granting a subsidy to that fuel consumption habits may vary, but he attributes this to the fact that the price difference, with or without subsidy, would be important.
Regarding the subsidy, he indicated that the ideal would be for it to be applied to both fuels, but that this is a decision of the Government.
Consider that, if approved only for one gasoline, there would naturally be a transfer of consumers from higher gasoline to regular gasoline. However, he recalled that there is a range of latest generation vehicles, more environmentally friendly, whose injection engines do require superior gasoline.
These users must continue using that fuel, regardless of the price, to preserve their vehicles, because for some units the use of lower octane gasoline is not recommended, he explained.
Retailers expect changes in the regulations
Meanwhile, the gasoline sector, regarding the Government’s new provision to implement ethanol only in regular gasoline as of August 22, is awaiting the publication of the legal and administrative instruments that make this measure official, indicated Enrique Meléndez, executive director of the Guatemalan Association of Gasoline Retailers (Ageg).
The sector’s position is to wait for the publications to analyze the ethanol mix and how the subsidy for regular gasoline will be, added the manager.
Mineco affirm commitment to the Agreement
The Ministry of Economy (Mineco) was consulted about what effects it could have on the Reciprocal Trade Agreement with the USA the decision to implement the 10% ethanol blend starting August 22, but only in regular gasoline and not in premium gasoline as initially planned, and taking into account the commitment established in that agreement, the institution responded that Mineco reaffirms its commitment to the implementation of the ethanol blend mandate. He added that this commitment remains firm and that it is a transition process.
Business sector reports uncertainty due to change
The Chamber of Industry of Guatemala (CIG) agrees with what was expressed on Monday, July 27, by other sectors in which The new provision to implement ethanol blending must be clear and not affect legal certainty.
Enrique Font, president of that entity, said that the CIG considers that the new decision and this process must be accompanied by transparent communication, supported by technical criteria and evidence, which allows the concerns of consumers and productive sectors to be resolved, fstrengthening trust during that process.
He recalled that on July 27 The Cacif expressed its concern that the changes announced by the Government of Guatemala in the implementation of the E10 blending mandate, the modification of the implementation schedule and the recent decision to apply it only to regular gasoline generate uncertainty about compliance with the commitment assumed by the State of Guatemala in the Reciprocal Trade Agreement and reduce the margin to implement the E10 mandate in the planned terms.
Meanwhile, Waleska Sterkel de Ortiz, executive director of AmCham Guatemala, commented that the entity observes with concern the recent changes announced and closely follows what the United States government may indicate, with whom the agreement was signed. Reciprocal Trade Agreement (ART), which contemplates the commitment to incorporate ethanol in all fuels.
“Any measure that deviates from what was agreed could generate uncertainty about compliance with bilateral commitments,” he added.
In addition, he indicated that the increase in oil prices is an issue that is affecting internationally, and that Guatemala With the implementation of E10 you would have a competitive advantage and an opportunity to reduce prices, benefiting the environment and consumers in general.
“We consider it important that any adjustment to the energy policy is implemented with legal certainty, transparency and dialogue, preserving the confidence of investors and strengthening the commercial relationship between Guatemala and the United States, for the benefit of both countries,” said the executive.
Font added that it is important that Guatemala continues to project itself as a country that offers legal certainty, generates confidence for investment and fulfills the international commitments assumed. For this, It is essential that any regulatory change is implemented with clear rules, coordination between institutions and conditions that favor the country’s competitiveness.