Source: Portal Fator Brasil - Rio de Janeiro / RJ - 05/08/2010

In the panel “Challenges and opportunities of the Brazilian fuel market” held this Wednesday, August 04th, during the National Forum of Gas Stations, Equipment and Convenience Stores, at Postos & Conveniência 2010, several topics related to the sector of ethanol. The main subjects in debates were the growth of the market, the agricultural production of sugarcane, the tax evasion of ethanol and the new regulatory framework for biofuels.

The director of Recyclable Fuels of the Ministry of Mines and Energy, Ricardo Dornelles, estimates that in 2019 the consumption of Brazilian ethanol will be around 60 billion liters. According to him, the ministry expects to expand the export of Brazilian ethanol to the United States, European Union and Asia for the next 10 years. Currently, the ethanol market is equivalent to 80% of fuel consumption in Brazil and the USA.

The growth of the ethanol market and, consequently, the growth in the production of sugarcane, represents an increase in the generation of jobs in Brazil, said the executive secretary of the Ministry of Agriculture, Livestock and Supply, Manoel Bertone. According to Bertone, the distribution of sources of agricultural production of biofuels across the country is a guarantee of employment for the population and a way to keep the market supplied. “The private sector must make strategic partnerships, as we cannot leave the market running short. And the government, must act with the creation of public policies for the sector, ”he said.

Another focus of the panel was the deficiency in the inspection of taxes on ethanol transactions. According to what was found in the debate, there should be greater inspection by the government, as the gap in the inspection facilitates tax evasion on the part of some large plants, which, by not paying taxes, sell cheaper ethanol, breaking down small producers. "An effective solution for this would be for no one to pay tax or else everyone should pay, because the way it is, the government must take action", highlighted the president of Fecombustíveis, Paulo Miranda. For the president of Abieps, Volnei Pereira, the government should think about the implementation of action strategies, "which are very good, but are not giving results." According to Volnei, a solution would be new rules for Brazilian inspection with tax reform.

The director of the National Petroleum Agency (ANP), Allan Kardec Duailibe Filho, believes that putting pressure on the bodies responsible for inspection is one of the solutions to the problem. He also suggested this month a meeting at the ANP with representatives of the Federal Revenue of all states and representatives of Sindicom, Abieps, Fecombustíveis, Minas Gerais and Energia e Agricultura to discuss the matter. "Perhaps disclosing the name of these tax evaders is a simple measure to resolve the issue," signaled the executive vice president of Sindicom, Alísio Vaz. The regulatory framework should contain guidelines for this inspection. The document is currently under discussion in the Federal Senate.

FORUM - Held for the first time in the Federal District, the Forum of Gas Stations, Equipment and Convenience Stores discusses relevant issues for the sector such as ethanol, the environment and competition law. The program will take place in parallel to Feira Postos & Conveniência 2010. The environment will be the theme of the first lecture on August 5, which will bring together representatives from the Ministry of the Environment, the Brazilian Association of Environmental Entities and the National Association of Municipal Environmental Agencies Environment. Relevant aspects such as environmental legislation for the service and service segment will be discussed. Closing the program of the Forum, a panel on Competition Law, attended by the Secretariat of Economic Law. The panels will have the participation of representatives of Sindicom, Abieps and Fecombustíveis, who are organizers of the event.

Market data - The market today has more than 37 thousand service stations and, in 2009, generated more than 340 thousand direct and indirect jobs and had a tax collection in the order of R $ 57 billion, generating a revenue above R $ 192 billion. In the convenience store area, 5.500 units were accounted for, which means R $ 2,8 billion in revenue. In the DF, there are 315 service stations, which collect approximately R $ 1 billion annually.

Abieps - Brazilian Association of Equipment Industry for Service Stations gathers and represents equipment manufacturers and service providers from all over the country that work directly with the oil products and renewable energy distribution market. Founded on August 21, 2001, it aims to interact continuously and be a representative of the member with the institutions, business, inspection, regulatory and government agencies, acting in an ethical and transparent manner, in addition to promoting continuous actions in order to aggregate and transfer greater knowledge through conferences, debates, panels, congresses, fairs, events and training.

Fecombustíveis - National Federation of Trade in Fuels and Lubricants represents 34 Unions of Automotive Fuel Dealers and Fergás nationally, defending the legitimate interests of almost 37 thousand service stations, 425 Transporter Retail Dealers and approximately 36 thousand LPG resellers, in addition to the resale of lubricants. Affiliated to CNC (National Confederation of Trade in Goods, Services and Tourism), the Federation is also the Brazilian representative of the Latin American Commission of Fuel Entrepreneurs. Founded in 1960, Fecombustíveis celebrates its Golden Jubilee this year.

Sindicom - Representative of the main fuel and lubricant distributors in Brazil - AirBP, Ale, Castrol, Chevron, Cosan, Ipiranga, Petrobras Distribuidora, Petronas Lubrificantes, Repsol, Total and Shell - the National Union of Fuel and Lubricant Distributors (Sindicom) has as its mission to act as an interlocutor between the Government, public and private companies, in addition to promoting the efficiency and quality of products and services offered to the final consumer. The entity is always at the forefront of discussions on matters in the legal, tax, environmental, regulatory, antitrust and ethanol areas that are common to its associates.

Fagga I GL events - Since 2006, the company Fagga Eventos is part of the French group GL events, considered one of the largest global groups in the area of ​​event organization and management of exhibition and convention centers. With offices in Rio de Janeiro, São Paulo, Minas Gerais and Salvador, Fagga Eventos was created in Brazil in 1964 and has already held more than 2.500 events in Brazil and 240 abroad, including congresses and business fairs. The company also operates in the sectors of civil construction, culture, sports, fashion and beauty. Among its biggest fairs are the Rio de Janeiro Book Biennial, Construir, Hair Beauty and Estétika.

[Posts and Convenience 2010, August 3, 4 and 5, at the Ulysses Guimarães Convention Center (SDC Eixo Monumental - Brasília - DF)].