Brazil rules out changes to ethanol admixture laws

Despite pressure from energy major Petrobras and other suppliers, Brazil’s federal government has reportedly ruled out changing the ethanol admixture laws. Petrobras had requested the government to increase the proportion of anhydrous alcohol (ethanol mixed with gasoline) in gasoline from 20% to 25%. Petrobras made the request in a bid to lessen the rising demand for gasoline imports. Suppliers also advocate increasing the ethanol admixture because the increase in sales of anhydrous alcohol would compensate for the reduction in hydrous sales which are used for ethanol-only and flex-fuel vehicles. Last year, Brazil reduced its ethanol admixture from 25% to 20% in response to a nationwide ethanol shortage brought about by adverse weather conditions and soaring sugar prices. Unica, Brazil’s sugarcane industry association, said the country’s total ethanol sales in 2011 was 14.6 billion liters, 18% lower than the previous year. (June 25, 2012)