New Petrobras CEO may usher in a new era for ethanol industry

In Brazil, Petrobras’ new CEO says the days of government-subsidized gasoline will soon be over, boosting demand for flex-fuel vehicles and E100 hydrous ethanol to fuel them. Though the move is likely to create inflation pressure, the main reason for having continued the failed policy for slow long, it should stimulate demand for both domestic producers as well as would-be exports such as China and the US. The new CEO, who used to be the head of the sugarcane union UNICA, says that fuel pricing policies will now be made without political interference and instead developed for the good of the company.