(Markets Business Insider/RTTNews) Brazil’s Senate has approved a legislation authorizing ethanol producers to sell the fuel directly to the fuel stations. After the 47-2 vote in the Senate, the bill should be voted by the House of Representatives.
Proposed by Senator Otto Alencar (PSD-BA), the bill aims to increase competition in the fuel market and lower the final price for the consumer.
The project cancels the article 6 of Resolution 43/2009, by the Brazilian Agency of Petroleum, Natural Gas and Biofuels (ANP), which states that an ethanol producer (supplier) may only market the product with another supplier registered with the ANP, with a distributor authorized by the agency or with the foreign market.
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Otto Alencar said his project deals with hydrated ethanol, which is sold in automotive fuel pumps, not anhydrous ethanol, which is used to be mixed into gasoline. The senator said that this market is cartelized, which ends up increasing the final price to the consumer. READ MORE
