Brazil cuts ethanol blend in gasoline to 20 pct

BRASILIA (Reuters) – Brazil’s government has temporarily cut the mandated amount of ethanol blended into gasoline to 20 percent from 25 percent due to low supplies of the biofuel, the energy ministry said on Monday.

The reduction will be in force for 90 days from February 1.

…Brazil is the world’s biggest producer of cane-based fuel ethanol. Output in the current 2009/10 season fell short of expectations due to excess rains since June, which cut the concentration of sucrose in cane and reduced the time producers could work in the fields.

Mills were unable to gather around 50 million tonnes of cane which will now be harvested this year.

Reuters