Brazil ethanol sector could be given more good news

Brazil’s energy minister Edison Lobao has said the government could cut taxes on sugarcane derived ethanol to alleviate pressures on the sector.

The pressure comes from rising costs that has left biofuels struggling to compete with petrol. Any potential tax relief would bolster, and not replace, the restored mandatory ethanol content in gasoline back up from 20 to 25% coming this May.

Lobao revealed that ‘tax cuts are one measure in a set of many we’re examining’.

This comes after oil producer Petrobras announced at the end of January that petrol prices were set to riseat the pump for the first time since 2006.