Siamig suggests direct selling ethanol to service station
The direct sale of hydrous ethanol from mill to service stations has already been discussed by the sugarcane industry and is reintroduced by Mario Campos, president of Siamig, institution that represents mills in the state of Minas Gerais.
In an interview during the Ethanol Summit event in São Paulo, Campos said that the direct sale, in the case of Minas Gerais, with 853 municipalities and large land area, reduce logistics costs for transporting biofuel.
“We have in the segment an inefficiency logistics too big,” he said. “We have the obligation to sell from the mill to the distribution company, which has its distribution bases around the country.”
In the case of Mines, amended, there is classic example [of these logistical inefficiencies]. In the city of João Pinheiro, the largest in area of Minas, there are four mills installed. “A service station of the city that sells ethanol, could market the biofuel made in the city, but for that the ethanol reaches this service station it is sold by the mill for distribution company that leads the ethanol to Belo Horizonte, 350 kilometers away, and then back to João Pinheiro”, he said. “In other words, ethanol walked 800 kilometers unnecessarily.”
He said the fuel model of selling to distributors is a blueprint for fossil fuels, with refineries and nearby bases.
A chance to end these logistical inefficiencies is to allow the direct sale. For this, remember, you need to change all the legislation, tax and documentation in the National Petroleum Agency (ANP).
“The only tax that hits today ethanol is the ICMS”, he said. “So, would change the ICMS in the state government.”
“I say this not as a rule, but as a possibility,” he said. “I understand that distribution companies have a very important role, but if you look at these cases, such as Minas Gerais, it is understood that there is distortion.”
“[In the case of João Pinheiro] uses up more diesel, freight is more expensive to supply the market [with ethanol made in the vicinity of the city].”
Campos recognizes that the issue of direct selling is controversial. “In the sector [this issue] does not have a unanimous”, he says. “But this year the issue has shown specifically that in Minas Gerais, where the ICMS was reduced by 18 February and the use of hydrous advanced.”