Increase in ethanol blend will not create shortage in Brazil - govt

23 April 2013 20:34  [Source: ICIS news]

CAMPINAS, Brazil (ICIS)--An increase on the ethanol blend in gasoline will not lead to a shortage of ethanol in Brazil, the country's president told a government news agency on Tuesday, as Brazil gears up to increase its ethanol blending rate to 25% from 20% on 1 May.

According to President Dilma Rousseff, the increase on the ethanol blend in gasoline is in recognition that Brazilian production has been higher.

The Brazilian president said this segment of the economy is "extremely" flexible.

"When, [back] in the 1980s we had ethanol-based cars, it was inflexible. It was ethanol-based or not. As [sugarcane] is a product that suffers climate variations, a drought or something like this interferes in the production of feedstock, [but] we can surpass it with the flex fuel technology," she said.

Brazil has today the possibility of having a large ethanol sector that can produce ethanol for the domestic market and can be a great exporter, she said.

Brazil is expected to announce a stimulus package for ethanol producers in a move to boost production and investment in the sector.

By: Leo Siqueira
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