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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: elmatador who wrote (67559)8/15/2005 10:36:12 AM
From: Seeker of Truth  Read Replies (1) of 74559
 
Hi Elmatador,
Somebody posting on this thread said that Brazil has a tariff on imported oil thus making oil artificially less competitive than ethanol. I thought that something like the opposite situation prevailed, i.e. Petrobras is price controlled so that oil produced in Brazil is artificially cheap. Nonetheless ethanol is still cheaper. What's right? Is there any kind of subsidy for ethanol in Brazil in any form?
In other terms:
Is the oil price in Brazil the same as the world price? If not why not?
Thanks in advance for the valuable info.
Seeker
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