Brazil’s mandatory ethanol blend to rise to 25%

On January 17, Magda Chambriard, general director of ANP, the local oil sector watchdog, confirmed that the Brazilian government would bring back the percentage of anhydrous ethanol mixed with petrol from the current 20%, to 25%. Chambriard said the change is scheduled after the end of the local 2012-2013 sugar cane crop year in April, because the government needs to be sure that there will be no ethanol supply shortage. Earlier, Brazil’s Agriculture Ministry said ethanol output would be sufficient to meet the country’s increasing demand. On October 1, 2011, the government reduced anhydrous ethanol content in petrol from 25% to 20% due to uncertainties related to the 2012-2013 sugar cane harvest.
Reverting to the 25% ethanol mix is intended to mitigate the impact on Brazil’s inflation rates from the expected readjustment of local petrol prices. (January 18, 2013)