---
title: "Panama’s Bioethanol Plan Targets 2026 Rollout as Government Touts Jobs and Lower Emissions"
date: 2025-03-27
modified: 2026-03-30
author: ""
url: https://panamadaily.news/panama-bioethanol-plan-2026/
categories:
  - "Economy"
  - "Environment"
  - "News"
tags:
  - "bioethanol"
  - "fuel supply"
  - "José Raúl Mulino"
  - "Panama"
  - "renewable energy"
  - "sugarcane"
---

# Panama’s Bioethanol Plan Targets 2026 Rollout as Government Touts Jobs and Lower Emissions

## What Happened

Panama President José Raúl Mulino said Thursday that the government is in the final phase of a plan to introduce bioethanol into the country’s fuel supply nationwide, with implementation expected in 2026.

Speaking during his weekly press conference on March 27, Mulino said the fuel blend is known for improving fuel quality and helping the environment. He added that the initiative would apply to all types of vehicles, with the goal of improving combustion and reducing emissions.

## Economic and Environmental Goals

According to the president, the plan could generate around 30,000 direct and indirect jobs and bring an economic injection of $400 million over five years through investment and wages. He also said the project would help reduce Panama’s dependence on imported fossil fuels while strengthening economic activity in rural areas linked to the fuel and agricultural sectors.

Mulino noted that sugarcane producers in Panama have shown interest in planting more crops to meet expected demand for bioethanol. That demand could create new opportunities in agricultural production and related industries if the program moves ahead as planned.

## Interagency Coordination Underway

The National Energy Secretariat said the plan is being developed in coordination with the Ministry of the Presidency, the Ministry of Commerce and Industry, and the Ministry of Agricultural Development, as part of Panama’s climate commitments.

The agencies have carried out a technical and interinstitutional process in recent months that has included agricultural, financial, logistical, regulatory, commercial, and environmental analysis. Officials have also met with sugarcane producers and representatives from the fuel distribution sector to prepare for implementation.

## Broader Transport Context

The announcement came on the same day Mulino also said that MiBus will begin operating a new route to Casco Antiguo in Panama City starting Sunday, March 31, connected to the 5 de Mayo Metro station. He said the route would help ease traffic and serve as the country’s first green route, using electric buses.

Together, the bioethanol plan and the new electric bus route point to a broader push to expand cleaner transport and energy alternatives in Panama. While the bioethanol measure is still awaiting rollout, the government is presenting it as both an environmental step and an economic development strategy.