Panama announces implementation of the National Bioethanol Program starting in 2026

This press release was published in English using an automatic translation system

National Energy Secretariat

In his weekly press conference, the President of the Republic officially announced the implementation of the National Program for Blending Bioethanol into Gasoline, a strategic measure that seeks to boost the rural economy, reduce transportation emissions, and strengthen the country's energy security.

“We are beginning the process of incorporating ethanol into gasoline, a fuel already widely used around the world, which improves air quality and is environmentally friendly. Its main advantage is that it can be used in all types of vehicles, improving combustion and reducing emissions. A tremendous amount of work has been done to ensure benefits for all: consumers, producers, and the environment,” the President of the Republic emphasized during his weekly address.

He added that the program could generate more than 30,000 direct and indirect jobs and spur an investment of approximately $400 million over the next five years. "This means more money in agriculture and industry, and less dependence on imported fossil fuels," he stated.

This Program, led by the National Energy Secretariat in coordination with the Ministry of the Presidency, the Ministry of Commerce and Industry (MICI), and the Ministry of Agricultural Development (MIDA), is part of a State vision aimed at fulfilling Panama's climate commitments and diversifying its energy matrix with renewable sources.

Over the past eight months, the institutions involved have developed a rigorous technical and inter-institutional process that has included the analysis of agricultural, financial, logistical, regulatory, commercial, and environmental aspects. In addition, meetings have been held with key stakeholders in the value chain, including sugarcane producers and representatives of the fuel distribution sector, to ensure effective implementation.

Implementation is scheduled to begin in the last four months of 2026, with an initial blend of 10% bioethanol in gasoline.

The Interinstitutional Committee recently validated the final elements of the program, including its technical, regulatory, and logistical feasibility.

“Over the past few months, we have conducted an exhaustive analysis with the Interinstitutional Committee, evaluating the best possible implementation plan, always with an eye toward benefiting Panamanians. This program represents a real opportunity to transform our energy mix and support the country's agroindustrial development,” stated Juan Manuel Urriola, National Secretary of Energy.

The National Bioethanol Program has the potential to boost agroindustrial development and stimulate the rural economy, contribute to reducing emissions from the transportation sector, and stimulate investment.

The National Government reiterates its commitment to implementing this initiative and to carrying it out under the best technical, social, and institutional conditions for the benefit of the country.