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ANP wants to facilitate the direct sale of Ethanol by easing restrictions on the sale of biofuel in Brazil

Written by Valdemar Medeiros
Published 05/10/2020 às 12:11
ANP - Ethanol - biofuel
Ethanol sales in Brazil

ANP wants to facilitate the direct sale of Ethanol in the Brazilian oil and gas market

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

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Flexibility in the direct sale of Ethanol

The proposal, which provides for the revision of an article in Resolution 43/2009, aims to make restrictions on the sale of biofuel more flexible, reducing the costs of the plants, through the creation of a linked distributor, said the ANP.

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

“The topic has been widely discussed by the agency… the only obstacle to the implementation of the measure is the imminent risk of competitive imbalance arising from the current tax arrangement,” the regulatory body said in a statement.

ANP states that there are Taxation, so there is still no direct marketing 

Currently, there are taxes in the production and distribution chains, and the mandatory withdrawal of the distributor link could lead to a non-isonomic competitive advantage and significant losses in collection, according to the ANP.

To deal with the issue, the agency proposes the creation of a tied 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 the sale takes place directly

The ANP states that quality is a factor that is totally out of negotiation, as well as movement control through the electronic product movement information system (e-SIMP).

Valdemar Medeiros

Journalist in training, specialist in creating content with a focus on SEO actions. Writes about the Automotive Industry, Renewable Energy and Science and Technology

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