UPDATE 1-Brazil's Bolsonaro allows ethanol producers to sell direct to consumers

(Updates with Bolsonaro signing decree)

BRASILIA, Aug 10 (Reuters) - Brazil’s President Jair Bolsonaro signed on Wednesday a temporary decree allowing producers and importers of hydrous ethanol to directly sell the biofuel to consumers at gas stations.

The decree also allows gas stations bearing the brand of a distributor to sell fuels from other suppliers, provided that consumers are informed of the origin of the product.

The policy is aimed at increasing competition in the fuel sector, it said.

The Mines and Energy Ministry said in a statement that temporary decree will become effective in December.

This temporary decree requires Congressional approval in up to 120 days to become law. (Reporting by Jake Spring; editing by Richard Pullin and Chizu Nomiyama)