Brazil Shelves E32 Ethanol Blend Vote to Keep Subsidy Requests at Bay

The federal government delayed action on raising the ethanol share in gasoline to 32 percent after finance officials warned that any move could trigger fresh demands for fuel subsidies amid climbing oil prices.

Brazil's federal government has postponed a scheduled vote on lifting the ethanol blending requirement in gasoline to 32 percent. The decision reflects concern that advancing the measure now would open the door to renewed calls for fuel subsidies at a moment when oil prices are climbing and the impact on gasoline costs has already exceeded earlier projections.

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