(SeeNews) - Jan 18, 2013 - Brazil's government will raise back the percentage of anhydrous ethanol mixed with petrol (gasoline) to 25%, from the current 20%, Magda Chambriard, general director of local oil sector watchdog ANP, confirmed yesterday.
The lift is expected to occur in April, after the end of the local 2012/2013 sugar cane crop year, as the government needs to make sure there will be no ethanol supply shortage, Chambriard said.
Later yesterday, Brazil's Agriculture Ministry affirmed that ethanol output would be sufficient to meet the boosted demand.
The ethanol blend rise will be implemented in order to mitigate the impact of the expected readjustment of local petrol (gasoline) prices on Brazil's inflation rates.
Amid the uncertainties related to the 2012/2013 sugar cane harvest, anhydrous ethanol content in petrol was trimmed to 20% from the previous 25% as of October 1, 2011.