June 4, 2020 / 6:36 PM / a month ago

Brazil energy council clears way for direct sale of hydrated ethanol to gas stations

SAO PAULO, June 4 (Reuters) - Brazil’s CNPE national energy council approved on Thursday a resolution that establishes rules allowing producers of hydrated ethanol fuel to sell directly to gas station owners, according to a statement.

Oil regulator ANP will now be able to take steps to put the new rules into practice, the statement said.

The CNPE has said for more than a year that it was considering tax changes that would allow for direct sales of the biofuel, adding that the measure should increase competitiveness in the sector.

Among the fuel distribution companies that stand to benefit are BR Distribuidora, formally Petrobras Distribuidora SA , Raizen, which is a joint venture between Royal Dutch Shell PLC and Cosan SA, and Ipiranga, a unit of Brazil’s Ultrapar Participacoes SA.

Brazil-listed shares in Cosan, BR Distribuidora and Ultrapar jumped between 0.5% and 1% on the news, though quickly pared most of those gains.

Reporting by Luciano Costa; Writing by Gram Slattery Editing by Marguerita Choy

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