05-08-2013 11:05 AM
Two weeks ago, the Brazilian government decided to give tax credits to ethanol producers in the country. It is a R$ 0.12 (US$ 0.06)/liter exempt because ethanol was not competitive with gasoline to fill thanks. The exempt, however, was too short and most stations weren't able to reduce the prices for final consumers - at least not yet. Thirty percent of the exemption was used by produced, about 40 percent by and the remaining part can be given to final consumers. The cost of diesel, an important component, had risen a few months back in the country - something than impede more discounts.
The flee of flex vehicles in Brazil should grow by 3 million per year.
How that should impact the US?