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Senate approves provisional measure authorizing direct sale of ethanol to gas stations

Last year, Congress approved a similar proposal, but it was vetoed by the Executive. Text goes to promulgation.

The Senate approved this Wednesday (8) a provisional measure that allows trading companies and hydrous ethanol importers to sell the product directly to gas stations, without having to go through distributors.

The MP was presented by the government in February this year. As it is a provisional measure, the changes were already in effect from the date of publication. But to become permanent legislation, the proposal needed to be approved within 120 days, at the risk of losing its validity.

As the text was approved with the same wording as the proposal sent by the Executive to Congress, it will go to promulgation and not to presidential sanction.

According to the proposal, the producing agent, the trading company and the importer of hydrated ethanol are authorized to trade with:

  • distributor agent;

  • fuel retailer;

  • carrier-dealer-retailer; and

  • external market.

Defensores da medida afirmam que a MP irá aumentar a competição na venda de etanol hidratado.

MP vetoed

Last year, Congress had already approved a similar provisional measure, but expanded the benefit to ethanol production and commercialization cooperatives — which were already entitled to the zero rate of the Social Integration Program/Public Servant Asset Formation Program ( Pis-Pasep) and the Contribution to the Financing of Social Security (Cofins).

The Executive, then, vetoed the measure, claiming that the text created a tax waiver without budget forecast.


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