Labao's words come amid a surge in ethanol prices due to an inter-harvest shortage of sugarcane, the raw material used to produce the biofuel. Additionally, a bump in global sugar prices convinced many mills to produce the sweetener instead of ethanol. Like it or not, Petrobras will produce enough of the biofuel to avoid shortages during the inter-harvest season, says Labao.Petrobras will now produce ethanol more intensively in order to be the regulator of this market. I asked Petrobras President Jose Sergio Gabrielli to do this two days ago.
[Source: Reuters | Image: Agência Brasil – Wikimedia Commons]