Cattlenetwork. The Brazilian government is mulling the hike of an obligatory 23% ethanol mix in all gasoline to 25%, according to an Agricultural Ministry official.
Ethanol prices in Brazil are at their lowest point in two years.
“With this fall of prices, the ministers that make up the Inter-ministerial Council of Sugar and Ethanol, or Cima, are already talking about the possibility of raising the mix back to 25%,” said Alessandre Strapasson, the general coordinator at the Agricultural Ministry’s sugar and ethanol department in a phone interview with Dow Jones Newswires.
The higher mix would help the domestic market consume an additional 40 million liters of ethanol monthly, thereby sustaining prices.