Sugar-maker CEO says fuel price hike needed

The chief executive of Brazil’s Raízen, the world’s largest sugar maker, on Monday described as “necessary” a fuel price hike by Brazil’s state-run oil company Petrobras seen as potentially boosting his company’s business as well.

Raízen is Brazil’s largest producer of ethanol, which competes with gasoline. A rise in gasoline prices by Petrobras would likely benefit the company, which also operates in fuel distribution.

Petrobras raised fuel prices at the refinery gate from Friday, in a welcome respite for investors concerned about the growing discount that it has been offering to domestic consumers.

Global sugar prices will structurally change as demand from India falls and more volatility is expected in correlation with energy prices, Ricardo Mussa said speaking on the sidelines of an industry event in the United Arab Emirates.

Mussa, whose company’s current sugar production is 6.2 million tonnes, said there will be a spike in sugar prices due to the Russia-Ukraine war.

He said he did not expect a rise in sugar production in Brazil and that additional sugar produced there will be more expensive, but he did expect a recovery in sugar cane production.