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Brazil to Raise Ethanol Blend in Gasoline to 27 pct

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Brazil‘s struggling sugar and ethanol mills got more good news on Monday after the government granted an expected increase in the national blend of the biofuel in gasoline to 27 percent on Feb. 15 from the current 25 percent, industry officials said. The higher blend is the latest of several measures taken by the government expected to have a positive effect on the industry’s bottom line going forward.

In the past years, local firms such as Raizen , Biosev, Bunge, Sao Martinho and Guarani have struggled to post consistent and robust profits as rising production costs combined with government gasoline subsidies have squeezed mills’ margins. Also improving the outlook for mills was the government’s January decision to raise taxes on gasoline starting on Feb. 1, allowing ethanol mills to raise prices in tandem and recover profit margins.



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