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Brazil Ethanol UPDATE: Petrobras gasoline hike and Cosan acquisition of Esso


Petrobras raised ex-refinery gasoline and diesel prices by 10 and 15 per cent respectively on 30 April, after leaving prices frozen since September 2005. The modest increase – which takes effect on 2 May – will have no immediate impact on the Brazilian ethanol outlook. This is because the inflation-fearing Lula government has opted to reduce the federal tax on gasoline to keep prices at the pump unchanged. But the ethanol sector’s real future hinges on whether it makes the leap...

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