Government says it should decide on increasing ethanol in gasoline in June

The meeting of the CNPE council of ministers to discuss an increase in the mixture of anhydrous ethanol in gasoline from 30% to 32% should take place in the first half of June, and a decision confirming the progress of the mixture is expected, said the Minister of Development, Industry, Commerce and Services, Márcio Rosa, this Monday (25).

According to him, the discussion on the establishment of E32 will be a mere formality because the increase in the mixture of ethanol in gasoline has everyone's support, at a time when the Brazilian government is adopting measures to mitigate the effects of rising oil prices.

"It's already on the agenda, the government has already announced the measure. It remains to be deliberated... it's a formality because I imagine that the CNPE won't be opposed," Rosa told journalists during an event held by the Federation of Industries of Rio de Janeiro (Firjan).

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"In the case of ethanol, there is no doubt, because up to 32% there is no problem for motorization", he said.

The possibility of an increase in the mixture had already been announced by the Minister of Mines and Energy, Alexandre Silveira. President Luiz Inácio Lula da Silva confirmed at the end of April that the mix should increase.

A previous meeting of the CNPE (National Energy Policy Council) was scheduled, but had to be postponed due to Lula's visit to the United States, according to Silveira.

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The center-south, the main ethanol producing region in Brazil, could produce a record volume of ethanol this year, with plants using more sugarcane for biofuel, to the detriment of sugar, with higher agricultural productivity and also with the growth in the manufacture of corn ethanol.

The Minister of Development also said that a greater increase in the mixture, to 35%, depends on additional studies.

He said that the impacts of oil prices are contained and that there is no risk of an explosion in domestic prices, as Brazil has announced plans to subsidize prices.

But he added that, if necessary, other measures could be taken in relation to deadlines and amounts of subsidies.

Beef
Rosa stated that the Brazilian government has "good" dialogue with China for a review of the export quota of 1.1 million tons of beef that limits shipments from Brazil to its main market.

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He said that this review of China's safeguard, which placed a 55% tariff on non-quota exports, could happen next year.

Speaking about trade agreements, Rosa stated that the next one will be between Mercosur and Canada, and that 60% of the terms of this pact have already been agreed. Negotiations could be concluded in 2026, according to him.

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Source: CNN