Brazil Policies May Not Halt Rising Ethanol Prices, Analyst Says

Brazil’s move to assume more authority over the country’s ethanol supply chain may not prevent a repeat of this month’s surge in prices for the renewable fuel, an analyst said.

The nation’s fuel regulator Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis is taking on more control over the production, import, export and storage of ethanol and other biofuels, according to a presidential decree signed into effect by President Dilma Rousseff yesterday. Brazil also reduced the minimum amount of ethanol that can be mixed with standard gasoline.