Direct sale of ethanol and end of brand loyalty at gas stations approved today (11/08) promise to put an end to the cartel, stimulate competition and lower the price of gasoline, which has been suffering consecutive spikes

A Provisional Measure to allow mill owners to sell ethanol directly from the plant to the service stations was approved by the Government this Wednesday morning (11), and may become the 'solution' to contain and curb the increase in gasoline prices. The text also establishes a white flag for gas stations, that is, it allows gas stations that display brands from a specific distributor to start selling fuel from other suppliers, as long as the consumer is informed.

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Direct sale of ethanol from plants will stimulate competitiveness with gasoline

For the Ministry of Mines and Energy, the relaxation of the so-called regulatory protection of loyalty to the brand “fosters new business arrangements between fuel distributors and retailers”. “This encourages competition in the sector and stimulates the entry of new agents and investments in infrastructure, which can generate jobs and income in the country”, indicates the folder.

According to the ministry, the action was taken based on a decision by the CNPE (National Council for Energy Policy) and studies carried out by the ANP (National Agency for Petroleum, Natural Gas and Biofuels) with the aim of increasing competition, benefiting the consumer. Final.

As it is a Provisional Measure, the bill becomes effective immediately for a period of 60 days, extendable once for the same period. If it is not analyzed within 45 days, it locks the Legislative House voting agenda until it is voted on or expires.

Mills can continue operating exclusively with intermediaries or can adopt a mixed model

The direct sale of hydrous ethanol to service stations, effective as of this Wednesday (11), will not imply high infrastructure expenses for the plants. In addition, the concept of the business, in relation to transport, will already offer gains that are currently consumed in the distance from delivery to the distributors' bases.

The plants can continue operating exclusively with intermediaries or can adopt a mixed model, since the Provisional Measure (MP) that authorizes the operation is not compulsory. And, for the time being, they will only be able to serve gas stations without a flag, which is also a limiting factor in revenue, since they are few.

Thus, the units can plan the distance they can travel and the corresponding number of service stations they can serve with the basic equipment they already have. Tank trucks, for example.

Alexandre Lima, president of Feplana and Usina Coaf (cooperative) in Pernambuco, does not see problems in this regard as a factor that increases the cost of operations, which could nullify the gain that the elimination of the distribution cost will entail.

Companies that distribute fuels can collect FOB ethanol at the plant

Any company, no matter how small, has this infrastructure, including tanking, and the distances will be shorter than the current delivery to the distributors' bases, says Lima, who was one of the leaders in the dispute for the adoption of this system that had been dragging on for more than two years.

At this point, Renato Cunha, president of Novabio and Sindaçúcar Pernambuco, points out that the plant “already delivers CIF (bearing cost, insurance and freight) to distributors, covering long distances, imagine if we were going to sell to service stations with a maximum of 30 km from distance. Expenses will be minimal and absorbable”.

Today, companies that distribute fuels can also pick up FOB ethanol at the plant (free on board, in Portuguese), that is, paying all responsibility for freight.

"It doesn't change anything in relation to the costs of the plants", explains Cunha, another leader in this election, uniting the plants of Pernambuco and which culminated in the formation of the novabio, which brought together industries from other states that support the direct sale of ethanol.