Ethanol Prices at Pumps: Ethanol Loses Competitiveness in Goiás and Roraima, Brazil

Recent market analysis for the period of April 12-18, 2024, reveals mixed trends in fuel prices across Brazil. During this week, ethanol prices decreased in 13 states, while gasoline prices saw a reduction in 20 federal units. Notably, ethanol has lost its cost-effectiveness compared to gasoline in the states of Goiás and Roraima, suggesting that consumers in these regions might find gasoline to be the more economical choice. Despite this, biofuel ethanol continues to hold an economic advantage in several key agricultural and consumer states across Brazil. Specifically, in São Paulo, Paraná, Mato Grosso, and Mato Grosso do Sul, using ethanol remains more cost-effective than gasoline. This indicates varying market dynamics and supply chains in these regions, making ethanol more attractive to local consumers. According to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), ethanol prices remained stable during this period, averaging R$4.69 per liter. In contrast, gasoline prices experienced a slight decline, dropping by 0.3% from R$6.77/L in the previous period to R$6.75/L. Consequently, the price ratio of ethanol to gasoline stood at 69.5%, a slight increase from the 69.3% recorded the week prior. Generally, ethanol is considered economically advantageous for consumers when this ratio is below 70%. This price survey encompassed 391 Brazilian cities, an increase of 12 cities from the previous week, providing a more comprehensive market overview. ANP's data not only considers the posted prices at fuel stations but also incorporates sales volumes, meaning larger consumer markets carry greater weight in the final results. Furthermore, between April 13 and 17, the price of hydrous ethanol sold by mills in São Paulo also saw a significant drop of 7%, from R$2.7873/L to R$2.592/L, further influencing retail prices and market competitiveness.