Brazil: Biofuels Annual

  |   Attaché Report (GAIN)

In February 2015, the government of Brazil (GOB) raised federal taxes (CIDE and PIS/COFINS) on gasoline to R$ 0.22 /liter, which increased the competiveness of ethanol relative to the fossil fuel. Some Brazilian states also increased the state tax for circulation of goods and services (ICMS) on gasoline and reduced the tax for ethanol, which further stimulated ethanol consumption. In March 2015, the GOB authorized an increase in the ethanol blend for gasoline from 25 to 27 percent. Total Brazilian ethanol production for 2016 is projected at 30.68 billion liters, a five percent increase compared to 2015. Ethanol exports for 2016 are forecast stable at 1.35 billion liters. The biodiesel industry remains regulated by the government, with the current biodiesel mandate set at seven percent. The industry advocated for an increase of the blend to 10 by 2020. Biodiesel production for 2016 is projected at 4.1 billion liters, similar to expected production for 2015 based on the stagnant economic situation in Brazil.

Brazil: Biofuels Annual

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