Ethanol sector in Brazil is in a deep crisis due to Covid-19. Therefore, according to the media reports, ethanol lobby in Brazil’s lower house of Congress is proposing a bill to suspend imports of gasoline, diesel and ethanol for 90 days. The move came after president Jair Bolsonaro rejected a proposal to raise tax on gasoline.
Congressman Arnaldo Jardim said that this will reduce gasoline supply and increase demand of hydrous ethanol.
Recently, after the Minister of Agriculture Tereza Cristina supported the increase in the Cide tax to help ethanol industry, Bolsonaro cleared that the government is in no mood to take this step. He said that it wouldn’t be fair to increase the Cide tax to help the sector while people are losing jobs and having their salaries cut.
The sugar mills in Brazil have shifted to sugar production and are producing minimal ethanol as the ethanol sales in the market have dipped due to least demand amid lockdown.