No impacts yet as result of lower PIS/Cofins tax on Brazilian hydrous ethanol

In Brazil, the impact on hydrous ethanol prices as a result of the lowering of the PIS/Cofins taxes wasn’t immediate, with prices holding steady from the day before. When the government raised taxes for hydrous ethanol along with gasoline and diesel, the ethanol industry immediately complained saying they would be priced out of the market. So the government in turn reduced the tax on ethanol by about a third of the added taxes in an effort to try to improve the fuel’s competitiveness.