Energy

Brazil's lower house approves direct ethanol sales

1 minute read

BRASILIA, Nov 25 (Reuters) - Brazil's lower house on Thursday approved a bill that would allow ethanol producers to sell directly to the final reseller, typically gas stations.

The measure, which seeks to increase competition by cutting out intermediaries, will now go to the Senate.

Critics of the measure say it will increase fuel tax evasion in Brazil, which is widely estimated at several billion dollars per year.

An original version of the bill would have opened the door for gas stations carrying the logo of resale chains - such as Shell - to obtain ethanol from other sources, though that measure was scuttled in the final version that passed in the lower house.

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Reporting by Maria Carolina Marcello; Writing by Gram Slattery; editing by Jonathan Oatis

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