The Brazilian government Friday announced a rise in the amount of ethanol mixed into gasoline sold at the pumps to 25% from 20% from May 1.
The announcement was published in the official Union Diary and, the government said, was taken "bearing in mind the necessity of guaranteeing the adequate supply of fuel throughout Brazilian territory."
The government reduced the mix to 20% from 25% in 2011, and the new increase was hinted by Mines and Energy Minister Edison Lobao in January.
The announcement will benefit state-controlled oil major Petrobras. The company loses money importing gasoline at international prices to meet rising domestic demand, which it then sells at lower prices set by the government. Petrobras announced refinery price increases of 6.6% for gasoline and 5.4% for diesel in January, but analysts said the rise was not enough to offset the losses.
Sales of 'gasoline C', mixed with ethanol for sale at Brazilian pumps, rose from 35.491 million cubic meters in 2011 to 39.698 million cu m in 2012, the National Petroleum Agency, ANP, said Thursday. Brazil's gasoline imports rose to 3.780 million cu m (998.570 million gallons) in 2012 from 2.186 million cu m in 2011, the ANP said.
