Higher ethanol mandate approved by Brazilian Senate

Brazilian senators have approved a bill raising the mandatory amount of ethanol in petrol sold at the country's service stations as demand for the biofuel declines, reports Bloomberg New Energy Finance.

The blend percentage will be raised from 25% to 27.5%, according to the Senate, though the bill is yet to be ratified by President Dilma Rousseff.

Government policies limiting petrol prices have been challenged by ethanol producers in recent years as the alternative fuel becomes cheaper due to subsidised petrol.

Bloomberg reports that the same bill also increases a cap on the optional amount of biodiesel that can be mixed into fossil diesel from 5% to 6%.