"The Brazilian economy will feel a much bigger economic impact if you reduce the price of diesel," Biegai says. "Diesel has a direct impact on transportation and the costs of production of everything." More than twice as much diesel as gasoline was consumed in Brazil - nearly 45 billion litres of diesel in 2008, compared to nearly 19 billion litres of gasoline.
Sugar-cane industry fears cheap gasoline may hurt market
President Luiz In á cio Lula da Silva's announcement that Brazil may cut fuel prices to pump life into its economy has left the country's sugar-cane industry in dread that the struggling ethanol business could be crushed by cheaper gasoline.
30 April 2009 22:00 GMT
Updated
25 November 2012 9:51 GMT
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