Brazil May Reduce Ethanol Blending Rate for Gasoline to 18%, Valor Says

Brazil may reduce the amount of ethanol that must be mixed with gasoline from 25 percent to as low as 18 percent, following a surge this year in the renewable fuel’s price, according to Valor Economico.

The measure may be announced in the next few days, the Sao Paulo-based newspaper said in an article today without saying where it got the information.

The price of anhydrous ethanol that’s mixed with gasoline rose to a record of 2.73 reais ($1.72) a liter on April 20, up 122 percent since the start of the year, according to Piracicaba, Brazil-based research institute Centro de Estudos Avancados em Economia Aplicada.

To contact the reporter on this story: Stephan Nielsen in Sao Paulo at snielsen8@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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