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Brazil to increase petrol’s ethanol content

Brazil will raise the ethanol content of its petrol, with the expectation of creating demand for an additional 1 billion litres of biofuel per year and supply assistance for the Latin American country's sugar mills.

Earlier this year, the country passed a law to raise the required level of sugar-based ethanol in petrol from 25% to 27.5%.

Completed feasibility studies show that this rise is economically possible, enabling the government to allow the higher ethanol blend.

The ethanol blend level has remained at a standstill for the past two years. In January 2013, raised the biofuel requirement in petrol from 20% to 25%.