Saturday, April 30, 2011

Brazil May Lower Ethanol Percent in Gas to Lower Price and Curb Inflation

Brazil may lower the amount of ethanol in its gas from 25% to 18%. That would reduce the cost to the distributor by 5.1%.

However, the price reduction wouldn't reach the consumer because of gas taxes--now at 57%--as well as distribution and resale costs. But, it would "reduce the impact of rising fuel prices on inflation."

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