Petrobras fighting internally whether to cut gas prices, wreaking havoc on ethanol producers

April 4, 2016 |

In Brazil, an internal struggle between Petrobras’s board and management is wreaking havoc in global sugar markets and has the ethanol industry on edge as the two sides fight over lowering gasoline prices or not. The board wants to keep prices where they are while management wants to cut prices to counteract falling demand that has seen drivers prefer ethanol. Cutting gasoline prices would see ethanol demand slide again as drivers look to save money, even if it’s short term as the ethanol price parity to gasoline is well above the 70% energy value mark.

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Category: Producer News

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