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Posted on  

May 3, 2001

Brazil seen raising alcohol in gasoline to 22 pct

An inter-ministerial research team recommended that the Brazilian government raise the level of alcohol in gasoline to 22 percent from the present 20 percent, the Agriculture Ministry said on Monday.

Agriculture Minister Martius Vinicius Pratini de Moraes is expected to follow the study's recommendations and announce on Wednesday that the level of alcohol -- sugarcane based ethanol -- in the nation's gasoline will rise to 22 percent some time in mid-May, said a ministry spokesman.

Brazil's Pro-Alcohol program was conceived in the early 1970s energy crisis as a way to lessen the country's dependency on foreign oil and support Brazil's massive sugarcane industry.

Any amount of cane allocated for alcohol production reduces the raw material available to produce sugar. Brazil is the world's largest producer of sugarcane.

The level of alcohol in gasoline was reduced from 24 percent in August last year after a drought cut Brazil's main center-south sugarcane crop by nearly 20 percent.

The government opted to lower the level by 4 percentage points to avoid any sharp price fluctuation in the price of fuel at the pump.

The 2001/2002 center-south cane crop is expected to reach 222-227 million tonnes, up from the 207 million of the previous year.
 

 

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