Countries across Asia are increasing the use of ethanol in transport fuel as high oil prices continue to affect gasoline demand, according to a report by Czarnikow, cited by Reuters.
The report said ethanol producers in India are calling for blending levels to be raised beyond the current 20% mix with gasoline. In the Philippines, authorities are expected to increase ethanol imports to meet the required 10% blending level.
Vietnam is preparing to roll out a 10% ethanol blend in gasoline starting in June, signalling a wider shift in the region toward alternative fuels.
In Thailand, ethanol-blended fuel has become cheaper than pure gasoline for the first time in nearly a decade. The report said this could lead to more sugar being diverted for ethanol production.
The report also noted that in Brazil, changes in fuel pricing by Petrobras to match import costs could push ethanol prices higher, which may in turn lift raw sugar prices to around 18 cents per pound.
