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Petrobras Steps Up Ethanol Production  to Stem Soaring Prices

9:25 AM MDT | April 12, 2011 | Kara Sissell

Brazil’s president Dilma Rousseff has instructed state oil company Petrobras (Rio de Janeiro) to help stabilize ethanol prices by raising production, a two year project that will establish Petrobras as a ethanol pricing regulator, officials say. Oil and gas prices are regulated in Brazil but ethanol is considered an agricultural commodity and regulated only for quality control purposes. Ethanol is a common motor vehicle fuel in Brazil, as well as a raw material for several petrochemical projects, and prices have doubled in the last year. The increase stems...

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