Our site uses cookies to facilitate your visit. By continuing, you agree to our use of cookies.

Cookie compliance notification

List of Cookies used on Argus Media

Analytics Cookie

These cookies allow us to count page visits and traffic sources so we can measure and improve the performance of our site, using a service provided by Google Analytics. The analytical cookies are non-intrusive, which explains why they are already set when a user accesses this website.

Cookies used: __utma, __utmb, __utmc, __utmz, __SC_ANALYTICS_GLOBAL_COOKIE, __SC_ANALYTICS_SESSION_COOKIE

Compliance Cookies

This cookie is placed if you click the Hide button in this message. It tells us you have read the message and stops this message from displaying.

Cookies used: CookieLawCompliance

Functional Cookies

These cookies are used to enable core site functionality like login and logout. They do not contain any personal information and are automatically deleted when you close your browser.

Cookies used: ASP.NET_SessionId, ARGUSFORMONLINE, SITELOGIN

Brazil gasoline imports seen rising fourfold

27 Sep 2011, 3.50 pm GMT

Sao Paulo, 27 September (Argus) — Brazil's state-controlled oil company Petrobras expects its gasoline imports to increase fourfold this year as domestic drivers opt to fill up with gasoline because a poor harvest has boosted ethanol – and flex fuel – prices.

The company imported an average of 7,000 b/d of gasoline in 2010, and in 2011 that volume is rising to 30,000 b/d, Petrobras downstream director Paulo Roberto da Costa said.

Gasoline consumption in Brazil due, in part, to lower-than-expected ethanol output this harvest season. Amid fears of an ethanol shortage in the first quarter of 2012, Brazil's government chose to lower the blend of ethanol in gasoline to 20pc, down from 25pc, beginning 1 October.

Last week, ethanol prices were up in 19 of 27 Brazilian states, according to the National Petroleum Agency (ANP). Once the price of ethanol surpasses 70pc of the price of gasoline, car owners begin to migrate to the conventional fuel.

As it stands, it only makes sense for motorists with flex-fuel cars to use ethanol in two states – Mato Grosso and Goias, according to the ANP.

Brazil's strong automobile sales and growing middle class have helped boost demand for fuel by 6.6pc in the first half of this year.

During the first eight months of 2011, car and light commercial vehicle sales increased by 7.5pc on a year-over-year basis to 2.37mn units, according to the Brazilian Motor Vehicle Manufacturers Association.

Send comments to feedback@argusmedia.com
ej/ljc 2.4



If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.

Copyright © 2011 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.

View more news articles