Bioethanol in gasoline: benefits, risks and price impact

1 May 13:05

On May 1, 2025, the provisions of Law of Ukraine No. 3769-IX came into force in Ukraine, which require the addition of at least 5% bioethanol to gasoline sold in wholesale and retail trade. However, experts point to both the benefits and potential risks of this transition. What do experts think about this, how will it affect the cars and wallets of Ukrainians, was analyzed by "Komersant Ukrainian"

Bioethanol in gasoline has become mandatory since May 1

The innovations are envisaged by the Law of Ukraine “On Amendments to Certain Laws of Ukraine on the Mandatory Use of Liquid Biofuels (Biocomponents) in the Field of Transport” of 04.06.2024 No. 3769-IX.

What has changed:

  • Mandatory bioethanol content: Gasoline sold at wholesale and retail outlets must contain at least 5% bioethanol (by volume).
  • Exceptions: The requirement does not apply to gasoline with an octane rating of 98 and above, as well as to fuel purchased by the State Reserve Agency or the Ministry of Defense.
  • Legal framework: The innovations are provided for by the Law of Ukraine “On Amendments to Certain Laws of Ukraine on the Mandatory Use of Liquid Biofuels (Biocomponents) in the Field of Transport” dated 04.06.2024 No. 3769-IX.
  • Responsibility: For non-compliance, business entities face a fine of seven subsistence minimums for able-bodied persons for every 1000 liters of gasoline (UAH 21,196 as of May 2025).
  • Temporary postponement of fines: The State Ecological Inspectorate will not fine gas stations for selling gasoline without bioethanol, as the protocol forms and accounting procedure have not yet been approved and are still under development.

Safety for engines: what experts say

Gennadiy Ryabtsev, energy expert in a commentary [Kommersant] assured that the addition of 5% of biocomponents to gasoline, provided it meets European standards, is absolutely safe for all cars.

“If we are talking about adding 5 percent of biocomponents to gasoline, and these biocomponents comply with European legislation, then the use of such gasoline by all cars, without exception, does not pose a threat. There are no problems with the operation of cars that will use such gasoline,” Ryabtsev said.

He emphasizes that the safety of such fuel has been confirmed by both Ukrainian and foreign research. However, problems can arise if the biocomponents do not meet the standards or their content exceeds 5%.

“The problems begin if: first, biocomponents are added that do not meet European standards and regulations, in particular, bioethanol produced according to the Ukrainian standard, or food or technical ethanol, which is not bioethanol. And, secondly, if biocomponents are added in an amount higher than 5% by volume,” the expert warns.

According to him, then two-thirds of cars in Ukraine that run on gasoline may face problems.

“Then there may be problems with engine power, with the stability of various seals in the fuel system, with a decrease in the overhaul interval, with fuel stratification and the formation of steam plugs in the fuel system. And, in fact, these problems will arise in two-thirds of the vehicles used in Ukraine, the main fuel for which is gasoline,” explained Ryabtsev.

Advice to drivers: avoid too cheap gasoline

Sergiy Kuyun, director of the A-95 consulting group, notes that switching to gasoline with bioethanol requires high technological discipline, which not all gas stations adhere to.

He explained that alcohol has the ability to actively absorb moisture, which can lead to fuel stratification into water, ethanol, and low-octane gasoline. To avoid such consequences, it is necessary to thoroughly clean the tanks of oil depots and gas stations, fuel trucks, and constantly monitor the quality of the mixture using water markers.

“In large networks, this work has been going on for at least the last month. Rapid response teams have been set up to respond to various situations. This means that no issue will be left unattended. Honestly, I don’t know what the so-called economy networks and other peripheral players are doing,” Kuyun emphasized.

He advises drivers to refrain from buying too cheap gasoline in the first two months.

“The recommendation is to refrain from buying ‘cheap’ gasoline for at least May and June. It will not seem so to you later. Definitely do not refuel at the “barrels” – no one will do anything there,” the expert emphasized.

Impact on the price: will fuel become more expensive?

The issue of price is also a topic of lively discussion. Ryabtsev notes that the cost of gasoline with 5% bio-components in the EU countries is growing by only 1-2%, which is insignificant.

“This means that the exchange rate of the national currency against the euro has a much greater impact on pricing in Ukraine than this small increase in cost, which is quite conditional. Therefore, the price should not change directly as a result of replacing E0 fuel with E5. And those who say that the price will change are trying to justify, let’s say, the price increase and the increase in profits of companies operating in the market,” he explains.

Economist Oleg Pendzin, however, is less optimistic. In an exclusive commentary [Kommersant] Pendzin noted that in Europe, gasoline with bioethanol is usually cheaper, but in Ukraine the situation may be different due to the lack of alternatives and market peculiarities.

“In Ukrainian realities, since we have no alternative to switch to it, I don’t think it will be cheaper right away. I think it will even be a little bit more expensive,” Pendzin predicts.

He also draws attention to the higher fuel consumption with bioethanol.

“And the most important thing is that you have to understand that fuel consumption per 100 kilometers with bioethanol is higher than without bioethanol. That is, there will be about 1.5-2 liters more fuel consumption per 100 kilometers. In Europe, bioethanol is cheaper. That is, formally, you spend less on refueling, but then, however, the engine eats more of the mixture,” the economist adds.

Technical aspects and risks for used cars

Pendzin confirms that up to 10% of bioethanol in fuel is safe for the engine, but warns that there may be negative consequences for older cars.

“Up to 10% of bioethanol in the mixture is safe for the engine, but it would be desirable not to have 10%, because bioethanol is cheaper than gasoline. So that they don’t add more. This is the first thing. Secondly, for older cars, in which the manufacturer did not originally design the use of bioethanol, there may be some unpleasant consequences,” he explains.

In addition, engines running on a mixture of bioethanol start worse in cold weather, and with a bioethanol content of more than 10%, the engine’s life can be dramatically reduced.

“Bioethanol has a very strong effect on rubber bands, you can immediately understand that it dissolves them. Bioethanol dissolves the plaque on the fuel system, which then enters the catalyst and filters through the engine and clogs them in the exhaust system. So this is also an interesting point. Engines that run on gasoline with bioethanol start worse in cold weather. So there are such moments, but they may not be significant,” Pendzin warns.

The expert noted that with a bioethanol content of more than 10%, the engine’s life can be dramatically reduced.

“5% is not much. If it’s up to 10%, the engine will hold out. But if it is more, the engine’s service life is sharply reduced. And it is not known what will be cheaper,” the expert warns.

Environmental aspect and consumer choice

One of the main advantages of bioethanol is its positive impact on the environment, in particular, the reduction of CO2 emissions. Penzin confirms:

“It seems that the situation with the environment is better, and the exhaust is better, less CO2.”

However, in Ukraine, unlike in Europe, consumers will not have a choice between gasoline with and without bioethanol.

“In Europe, there is a choice. That is, you come to a gas station, you have a gun with a green leaf on it, and you can see that it is with bioethanol and without. That is, the consumer can choose which one to buy. We will have no alternative to bioethanol,” says Pendzin.

Gasoline with bioethanol is a step towards environmental friendliness, but only if standards and moderation are observed. Experts advise drivers to be careful: control the quality of the fuel, be interested in its composition and refuel at trusted gas stations.

Остафійчук Ярослав
Editor

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