Carbon neutral solutions are demanded to reduce the greenhouse gas (GHG) emissions from the mobility sector. In Brazil, alongside bioethanol, natural gas and biogas are potential solutions towards a low carbon future. While Brazilian natural gas market growth has increased due to recent offshore discoveries, its biogas potential is one of the largest in the world. Nevertheless, Brazil has currently no production of stock automobile by either gaseous fuel, despite of having the largest world flex fuel fleet (gasoline-ethanol). Therefore, the present research aims at evaluating critical points linked to the natural gas and biomethane businesses expansion in Brazil. The current scenario and outlook for energy usage is presented. RenovaBio, the recent governmental program to promote biofuels, is evaluated from the gas business point of view. And finally, the main incentive policies and regulations, price formation and limitations for the grid expansion are discussed. It is shown that biogas competitiveness as a vehicular fuel is limited mainly for the additional costs of its upgrading process to biomethane. Regarding the natural gas usage, the main limiting factor is the monopoly of production and transport in Brazil as it does not allow free competition and increases the end consumer price. Moreover, the current pipeline grid extension prioritizes the most industrialized regions and does not reach all potential natural gas users. New governmental policies and incentives were proven necessary to improve the economic viability and hence to fully benefit from the potential of both energy sources to reduce carbon footprint.