Brazil has demonstrated the resilience of its energy sector amid the 2026 Hormuz Crisis. Despite the ongoing conflicts in the Middle East and threats to the global flow of oil through the Strait of Hormuz, Brazil has maintained uninterrupted fuel supplies and secured provisions for the coming months.

This assessment was shared by industry experts at the Conexão SCA Brasil event, which brought together Sérgio Araújo, President of ABICOM (Brazilian Association of Fuel Importers); Martinho Seiiti Ono, CEO of SCA Brasil; and Alexandre Menezio, Managing Partner of SCA Brasil Aliança.

“Brazil suffered no impact on supply. We had regular imports in February, March, April, May, and June, and July’s supply is guaranteed. Regardless of the opening or closing of the Strait of Hormuz, we forecast the arrival of roughly 1 million cubic meters of diesel and 250,000 cubic meters of gasoline—volumes sufficient to complement domestic production and meet market demand,” highlighted Araújo.

The current situation underscores how the growing share of biofuels in the Brazilian energy matrix has been fundamental in reducing reliance on imports and bolstering the country’s energy security amid high geopolitical volatility.

Within this landscape, Brazil’s main vulnerability remains its dependence on diesel imports. While gasoline’s external reliance stands at around 10%,diesel still requires imports to cover between 25% and 30% of domestic consumption.

Consequently, SCA Brasil CEO Martinho Seiiti Ono noted that the combination of biodiesel and ethanol serves as a strategic differentiator for the Brazilian energy matrix.

“If Brazil did not rely on hydrous ethanol and the 30% anhydrous ethanol blended into gasoline, our external dependence would be far greater. Similarly, the mandatory biodiesel blend significantly reduces the need for diesel imports. We have an energy matrix of which we should be proud,” he stated.

According to Ono, the installed biofuel industry already has the capacity to meet future targets outlined in the Combustível do Futuro (Fuel of the Future) program. Currently, the country produces between 8 and 9 billion liters of biodiesel annually, but possesses the infrastructure to significantly expand this volume.

“With the gradual progress outlined in the legislation, we could reach a production of between 12 and 13 billion liters of biodiesel. This would further reduce the need for imports while generating economic and environmental benefits for Brazil,”

explained the SCA Brasil executive, adding that at several recent points, biodiesel has showcased competitive pricing against imported diesel.

Beyond supply and demand, Conexão SCA Brasil tackled one of the most sensitive and least-discussed topics regarding energy security in Brazil: fuel distribution logistics.

Although overall supply is guaranteed, the challenge lies in delivering fuel to regions farther from supply centers, which can still suffer from market disruptions and volatility.

“Anyone following supply in rural areas knows that logistics make all the difference. In some regions, it takes four to five days for diesel to reach a rural property after purchase. There are highly complex operations involving both road and waterway transport, which demand constant monitoring of inventories and supply scheduling,” observed Menezio.

According to the executive, Brazil’s logistical challenge goes far beyond product availability; it involves market intelligence, infrastructure, distance, and operational costs.

About SCA Brasil and SCA Brasil Alliance:

SCA Brasil is one of the most traditional Brazilian companies specializing in the physical biofuels market. It provides ethanol and biodiesel trading services, market intelligence consulting, and the procurement of inputs and logistical services for agribusiness companies. A privately held, 100% Brazilian company founded in 2000, SCA Brasil serves over 100 units connected to various corporate groups in the sugarcane and agribusiness sectors across 11 Brazilian states.

In 2021, it began supporting the purchasing strategies of rural producers and transport companies under the AgriForce brand. During the 2025–2026 harvest season, SCA Brasil Aliança facilitated R$ 2.5 billion in business transactions (approximately $500 million USD) on behalf of its clients. SCA Brasil Aliança is a subsidiary of the SCA Brasil holding company.