Ethanol Regains Competitiveness on National Average in Brazil

During the week of March 22-28, significant shifts were observed in Brazil's fuel price dynamics. Ethanol prices increased in 15 states, while gasoline prices rose in 22 federal units. Despite these general increases, ethanol has regained economic competitiveness on a national average, a first since the end of November last year. According to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the price ratio between ethanol and gasoline has fallen to 69.6%, down from 70.7% the previous week. This reduction in the ratio has made ethanol more economically attractive for consumers once again. At the state level, the biofuel proves to be economically advantageous for consumers in São Paulo, Paraná, Mato Grosso, Mato Grosso do Sul, and Roraima. Furthermore, the price of hydrous ethanol decreased at production plants in Mato Grosso, São Paulo, and Goiás. ANP's price survey covered 384 Brazilian cities, seven more than in the previous period. Between March 22 and 30, both ethanol and gasoline prices continued their upward trend. The biofuel was traded at R$ 4.72 per liter, an increase of 0.4% from the previous R$ 4.70/L. Meanwhile, the fossil fuel was sold at R$ 6.78/L, marking a weekly increase of 2% and its fourth consecutive rise. The figures released by ANP consider not only observed prices at gas stations but also sales volumes, meaning large consumer markets hold greater representation in the final results.