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Brazil to boost level of ethanol in gasoline

A mechanical harvester works in a sugarBrazil’s government is proposing a two percent increase in the percentage of sugar-based ethanol that can be blended into gasoline.

If Brazil’s president approves the plan, all gasoline sold in Brazil will have to contain at least 27 percent ethanol, up from the current minimum of 25 percent.

According to a Fox News Latino report, the agreement aims to bolster Brazil’s sugar cane industry and halt a wave of closures of ethanol plants. In recent years, roughly 80 plants for the production of ethanol were closed, while another 67 are undergoing court-administered reorganization.

Brazil’s ethanol industry will also benefit from the government’s recent decision to raise taxes on gasoline, which has allowed ethanol plants to raise prices in tandem and recover profit margins.

Nearly 90 percent of motor vehicles produced in Brazil are equipped with flex-fuel technology that allows them to run on either gasoline or ethanol.

 

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