Direct sale of ethanol to gas stations was released

On the 15th of June, the direct sale of ethanol and imported products was authorized in a Provisional Measure established by the government. The intention is to reduce the bureaucracy between the intermediation of international sales to gas stations and provide greater competitiveness in biofuel sales. In addition, the disclosed text modifies some tax rules.

Follow the text and learn more details about this Provisional Measure.

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Understand the Provisional Measure

As stated above, the new Provisional Measure aims to reduce some bureaucracies involved in the sale of biofuel. Thus, it will no longer be necessary for a trader to intermediate the purchase between the gas station and the distributors.

These direct sales also interfere with how revenue rates work. Since, with this movement, they start to participate in direct sales at 1.5% (PIS) and 6.9% (Cofins). In this way, biofuel companies are equated with producing agents.

According to senator Eduardo Velloso, this measure aims to increase sales efficiency by releasing distributors from participating in relations between producers and exporters.

What changes with the proposal?

Last year, a similar Provisional Measure had already been approved by the government. However, this year there was an expansion of the benefit for cooperatives producing and selling ethanol.

In February, a new measure was sent for a vote in the House. Finally approved, the new law authorizes the producing agent, the trading company and the hydrous ethanol producer to trade with:

• Distributor agent;
• Fuel retailer;
• Carrier-dealer-retailer; It is
• Retail market.

Thus, this new measure increases competition for hydrous ethanol sales in the market. On the one hand, some people believe that direct sales can have several consequences on the market, including a decrease in biofuel prices. On the other hand, deputies say that this will not affect prices.