Petrobras raises gasoline and diesel prices but too late in the cane crush to help mills immediately

In Brazil, Petrobras announced it will raised gasoline prices 6% and diesel prices 4% which is expected to have an immediate positive impact on ethanol prices as demand shifts away from more expensive fossil fuels. Though the policy shift wasn’t intended for the sole benefit of the sugarcane industry, it will benefit anyway in the medium term. With most of this year’s crush finished and few mills having stored ethanol in exchange for meeting short term cash needs, it won’t likely be until the next crush that begins in April when mills will really begin to benefit.