Brazilian ethanol prices could rise 25% if Cide increase approved

In Brazil, the new government is looking to boost the Cide tax on gasoline to 17 cents from 3 cents, which could have an immediate price impact of an additional 25% on ethanol prices. Doing so could have a major impact on the sugarcane crush currently underway as mills are getting more profit from sugar and as such have focused on sugar production, but it is expected that mills would switch to ethanol production instead if the policy shift is approved.