Brazil's Ethanol National Average Price Falls, Boosting Competitiveness

Recent data indicates a varied trend in Brazil's national fuel prices between March 29 and April 4. The average price of ethanol decreased, while gasoline prices remained stable, significantly boosting ethanol's competitiveness in the market. Specifically, the average selling price of ethanol was 4.70 Brazilian Reais per liter, marking a 0.4% drop from the previous week's 4.72 Reais. In contrast, gasoline prices held steady at 6.78 Reais per liter, after four consecutive weeks of increases. This shift has made ethanol a more economically attractive option for consumers. According to the National Agency of Petroleum, Natural Gas and Biofuels (ANP), the price ratio of ethanol to gasoline has fallen to 69.3%, down from 69.6% the week prior. This indicates that in many scenarios, choosing ethanol as fuel is more cost-effective. The ANP's survey, which covered 379 Brazilian cities, considers not only posted prices at gas stations but also sales volumes, providing a more accurate reflection of market dynamics. Analyzing state-level averages, ethanol presents a clear economic advantage in five states: São Paulo, Paraná, Mato Grosso, Mato Grosso do Sul, and Roraima. Consumers in these regions can save money by opting for ethanol fuel. Furthermore, the ex-factory prices of hydrous ethanol also saw declines in the producing plants of Mato Grosso, São Paulo, and Goiás states.