doesnt make sence, america imports more then double of what it consumes yet brazil produces al it needs, why is brazil still paying 3/4 bucks a gallon?
2007-03-24 00:29:06 · 4 answers · asked by J. 3 in Politics & Government ➔ Government
Actually,Venezula is the major oil producer and member of OPEC in the region. Brazil's oil production has to be geared towards export. Brazil's claim to fame is that it is one of the largest consumers of ethanol fuel.
Incidentally, just because a nation produces crude oil does not mean it is wealthy or self-suffficient (if it were, Nigeria and Venezula would be rich countries). Corruption and mismanagement drain wealth. Also, crude oil is not always processed in oil-producing countries. Although Brazil does now export gasoline, such a process is costly and the government may try to re-coup costs by maintaining low subsisdies on gasoline prices.
To answer your question, while I am not familiar with Brazil's energy policies, I would guess to say that Brazil imports its gasoline and diesel and does not have a significant energy subsidy program. The 1973 oil crisis prompted the government to start the ethanol fuel program in 1975.
2007-03-24 00:42:02 · answer #1 · answered by Anonymous · 1⤊ 0⤋
That's cheap compared to Europe.
That price is about 0.75 per gal, which is about $0.19 per litre! OMG we can only dream of prices like that!
In the UK- we pay at least £1 per litre- about £4 per gallon= very roughly $6 per gallon!
But I'd suppose it's part of a government plan to promote bio-fuel especially ethanol as being more attractive than gasoline- as it also supports Brazilian farm industry- but that's a guess.
2007-03-24 00:38:55 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Ethanol isn't as cheap to produce as gasoline.
2007-03-24 00:35:08 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Why is gas so expensive in the US when we are in control of Iraqs, and Afgahnistans oil??????????????????????
2007-03-24 00:38:34 · answer #4 · answered by David S 3 · 1⤊ 0⤋