BRAZIL: Senate approves urgency in analysis of ethanol direct sales

Published: 06/13/2018, 5:24:53 PM

Brazilian senators decided on Tuesday to give priority to the evaluation of the project aiming to authorize mills to sell ethanol directly to fuel station, according to government-run newswire Agência Senado.

Currently, producers have to sell ethanol to distributors which are then responsible to sell the biofuel to Brazilian fuel stations, according to rules defined by the National Agency of Oil, Natural Gas and Biofuels (ANP).

The author of the project to allow direct sales, senator Otto Alencar, from Brazil's Social Democratic Party (PSD), said that the recent crisis related to the truckers' strike in May has prompted the necessity to change the policy to trade ethanol in the country.

Distribution of ethanol and other fuels was impaired during the truckers' strike, and many fuel stations in the country faced shortages.

He said that the current rules "produce economic inefficiencies by preventing free trade through direct sales between ethanol producers and fuel stations."

By lifting ANP's prohibition of direct sales, fuel stations would have one more option to acquire the biofuels, improving competition in the market and potentially reducing prices for final consumers.