Truck drivers protesting rising diesel prices closed roads Tuesday in many Brazilian regions, disrupting the flow of goods, including ethanol, market sources said.
As of Tuesday morning, local media reported protests in Bahia, Espirito Santo, Mato Grosso, Minas Gerais, Santa Catarina and Sao Paulo states. In some, roads were totally or partially blocked.
Fuel prices went up in Brazil two weeks ago, when the federal government increased so-called PIS/Cofins taxes in an attempt to boost revenue.
Around 40 trucks were parked alongside a road near Ribeirao Preto, a main ethanol hub in Sao Paulo state where S&P Global Platts assesses ethanol prices daily.
There were no reports of blockages in Ribeirao Preto, but a protest parade was due to happen later in the day, local media reported.
"The ethanol market is even more stalled today because of truck drivers' protests on roads and near storage hubs," one ethanol trader told Platts.
In Guarulhos, near Sao Paulo city, where many fuel distributors have storage facilities, protesters also disrupted cargoes.
"Our fuel unity in Guarulhos is shut today. No vehicle can can get in or out," one trader at a major fuel distributor said. "They even threw fuel on the road. Things are messy and dangerous over there."
Near Santos, Latin America's largest port and a major sugar, ethanol and grains exporter, there were 2 km of slow traffic on the road that leads to terminals, according to road operator Ecovias.
There was no information available if the protests would continue Wednesday.
