Brazilian Gasoline

You give to reach the dreamed exploit of adentrar in the biggest world-wide market, badly obtains to supply its domestic market. Worse, it imported inefficient etanol of American maize, in the peak of crisis R$ 0,40 more cheap than the national similar. One contrassenso for a tropical country, with land, propitious water and climate to very supply its domestic market and of the external market. After as much fight consolidating etanol as commodity, if it cannot lose the uneven possibility to supply the pujante international demand.

The Brazilian government decided to after act the economic crisis provoked by the sudden rise of prices of etanol, that it also pressured the indices of inflation in 2011. It defined that etanol is a strategical fuel and not only one derivative of the agricultural production. It determined that Petrobra’s acts as a great one player in this market, with plans to triple its production in four years, of current 5% for 15% of the total of etanol produced in the country, and thus to minimize the problems of period between harvests and volatileness of prices. A so complex problem as the market of etanol starts to be decided with the confrontation of its structural problems that had reduced the competitiveness of the product. It must be searched conditions for a new supported cycle of growth of the industry of etanol.

Some measures that demand courage and effort politician can be cited: to adjust federal and state taxes, reducing aliquot to improve the competitiveness of etanol front to the gasoline; bigger investments in research in favor of energy and ambient efficiency of the vehicles flex; strong incentive to the generation of etanol celulsico, saw agricultural and forest residues of the biomass; logistic storage and improvement; commitments of long stated period of all the productive chain with offers and the demand; improvement of the infrastructure and the systems of supplying. Currently the market inductors are very distinct of those observed in 2005. the topic at hand. In these last six years, the cost of production of etanol increased 40% more than and the product lost competitiveness front to the gasoline, that follows the same with price since 2005. Beyond the significant reduction of edges, that do not justify high investments in new units, the entrepreneurs if feel in relation to the lack criteria in the setting of price of the gasoline unsafe. As much the public power how much the fuel plants and deliverers suffer with improvisation, lack of planning and politics of long stated period. The government has now that to face in short term a possible increase of demand for gasoline and a probable lack of it offers of etanol, events to be taken care of unhappyly by means of importation. The disparity enters offers and demand of etanol is generating distortions in the market. To each year the prices are if locating in raised platforms more. For the Brazilian consumer, therefore, the notice are not alvissareiras. At least per more three years it offers of etanol cheap is discarded and its future is again in game.