Brazil fuel tax exemption extension seen weighing on ethanol demand

In Brazil, Reuters reports that analysts had expected the exemption on fuel taxes to go back into effect from January 1 rather than be extended for a year for fossil and biodiesel and for two months for gasoline and ethanol. The tax on ethanol is much lower than that on gasoline, helping to make ethanol more competitive at the pump. Analysts say that extending the tax will make mills focus more on sugar rather than ethanol production, but sugar mills are currently in the intercrop season and won’t start crushing again until March at the earliest.