ANP Seeks to Facilitate Direct Sale of Ethanol by Relaxing Marketing Restrictions on Biofuel in Brazil

Written by Valdemar Medeiros

Published on 05/10/2020 at 12:11

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ANP Aims To Facilitate Direct Ethanol Sales In The Brazilian Oil And Gas Market

The collegiate board of the National Agency of Petroleum, Natural Gas and Biofuels (ANP) approved on Thursday the holding of a 45-day public consultation on the possibility of direct sales of ethanol from producer to reseller, the regulator reported on Friday.

Flexibilization In Direct Ethanol Sales

The proposal, which aims to revise an article of Resolution 43/2009, seeks to relax the restrictions on the marketing of the biofuel, reducing the costs for plants through the creation of a linked distributor, said the ANP.

The topic is of interest to distributors such as BR, Ipiranga, part of the Ultra group, and Raízen, a joint venture of Cosan and Shell companies.

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“The agency has been widely discussing the topic… the only obstacle to implementing the measure is the imminent risk of competitive imbalance arising from the current tax arrangement,” the regulatory body stated in a communiqué.

ANP States That There Are Taxation Issues, Hence There Is Still No Direct Marketing

Currently, there are taxes in the production and distribution chains, and the mandatory removal of the distributor link could cause non-equivalent competitive advantages and significant revenue losses, according to the ANP.

To address the issue, the agency proposes the creation of a linked distributor, a new regulated agent that would be registered by the regulatory body and linked to the ethanol supplier.

ANP Wants To Maintain The Same Quality Of Ethanol If Sales Occur Directly

The ANP states that quality is a factor that is completely non-negotiable, as well as the control of movements through the electronic product movement information system (e-SIMP).

ANP Seeks to Facilitate Direct Sale of Ethanol by Relaxing Marketing Restrictions on Biofuel in Brazil

ANP Aims To Facilitate Direct Ethanol Sales In The Brazilian Oil And Gas Market

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ANP Wants To Maintain The Same Quality Of Ethanol If Sales Occur Directly

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ANP Seeks to Facilitate Direct Sale of Ethanol by Relaxing Marketing Restrictions on Biofuel in Brazil

ANP Aims To Facilitate Direct Ethanol Sales In The Brazilian Oil And Gas Market

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Flexibilization In Direct Ethanol Sales

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