With Brazil's ethanol prices soaring, the nation's government is expected to put forth a policy to reduce the mandatory ethanol blend in gasoline. Brazil's energy minister, Edison Lobao, recently met with President Dilma Rousseff. The two immediately arrived at the conclusion that unless Brazil's mandatory ethanol blend is reduced, the nation will run out of the biofuel before the next sugarcane harvest.

Until now, all gasoline sold in Brazil had to contain at least 25 percent ethanol, but that figure will reportedly drop to 20 come October 1. Lobao says this reduction is a precautionary measure that will be applied indefinitely since Brazil's upcoming sugarcane is expected to be disappointing, too.

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