 After testing in government fleets with several prototypes developed by the local carmakers, and compelled by the second oil crisis, the Fiat 147, the first modern commercial neat ethanol car (E100 only) was launched to the market in July 1979. The Brazilian government provided three important initial drivers for the ethanol industry: guaranteed purchases by the state-owned oil company Petrobras, low-interest loans for agro-industrial ethanol firms, and fixed gasoline and ethanol prices where hydrous ethanol sold for 59 % of the government-set gasoline price at the pump. Subsidising ethanol production in this manner and setting an artificially low price established ethanol as an alternative to gasoline.
