Government of Rio Grande do Norte Allows Direct Sale of Ethanol from Mills to Gas Stations; Expectation Is That Action Will Reduce Prices for Consumers

State Government of RN Authorizes Direct Sale of Ethanol to State Plants with Expectation of Price Reduction for the End Consumer

The price of fuels is severely affecting Brazilian families’ budgets, being one of the villains for rising inflation. Aiming to reduce the impact of fuel on the wallets of drivers in the state of Rio Grande do Norte, a decree authorizes industries producing Hydrated Ethanol Fuel to sell the product directly to gas stations. 

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On the afternoon of this Monday, the 27th, a decree was signed by Governor Fátima Bezerra (PT) that allows the sale of alcohol by the plants, just as it already occurs with the distributors, directly to retail.  

What Are the Advantages of the Decree  

The governor believes that the decree will increase competition, a situation that should lead to a reduction of fuel prices at more than 2,800 gas stations in the state of Rio Grande do Norte. The measure was published this Tuesday, the 28th, amending the ICMS legislation, being the first state to regulate the direct sale. 

Guarantee in Price Reduction 

The government of the state of Rio Grande do Norte wants to guarantee a price reduction at the pump through the State Department of Taxation (SET-RN). A presumptive credit system is being adopted in the industry: the plants will have a presumptive credit of 25% on the value of the liter of Ethanol transferred. According to “Agora RN”, a total of three ethanol producing plants will benefit in the state. 

Fátima Bezerra stated that the fuel prices are high due to the federal government: “It is important to make it clear that this explosion in fuel prices is due to the Federal Government. In 12 months, the price has risen by about 40%, and in the last three years, there has been no increase in ICMS in the state. With this regulation, the State Government is contributing, meeting an old request from the sector. We hope this measure can effectively help lower fuel prices for consumers.”