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The impact of fuel prices on Brazilians' pockets: after a truce in readjustments, diesel, gasoline and ethanol soar in August and consumers fear further increases
In the last week of August, the fuel scenario in Brazil has undergone a shocking turnaround leaving consumers apprehensive. Gasoline, diesel and ethanol prices saw significant increases, news that did not please most Brazilians who already face economic challenges.
The liter of gasoline, the most used fuel in the country, had an increase of 3,22% in the period from 14 to 20 August, while diesel had a significant increase of 10,06%. Ethanol was also not left out, presenting an increase of 0,77%.
But what led to these sudden increases in fuel prices?
Petrobras, the main company responsible for the production and distribution of fuels in Brazil, announced an increase of R$ 0,41 in the price of a liter of gasoline for distributors. As Brendon Rodrigues, Head of Innovation and Portfolio at ValeCard, pointed out, the transfer of this readjustment is gradual. This is because gas stations keep inventory with previous prices, which means that the new prices will only be fully reflected at the pumps in the coming days.
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Variations in gasoline prices were not uniform throughout Brazil. Some states recorded more significant increases than others. Espírito Santo (7,04%), Amapá (7,03%) and Paraíba (4,57%) were the states with the highest increases in gasoline. On the other hand, São Paulo surprised with the lowest prices, with an average value of R$ 5,616 per liter. Acre, in turn, led the ranking with a frightening average of R$ 6,649
Scenery in the city of Rio de Janeiro
A city of Rio de Janeiro also did not escape the increases. A liter of gasoline was 6,32% more expensive between the 21st and 27th of August, with an average price of R$ 6,020. The Rio neighborhoods showed a significant variation in prices, with a difference of 17,2% between the most expensive neighborhoods, such as Castelo (R$ 6,392) and Flamengo (R$ 6,296), and the cheapest ones, such as Irajá (R$ 5,453 ) and Quintino Bocaiuva (R$5,491).
These regional differences reflect the complexities of distribution logistics and state taxes.
Ethanol: smart financial alternative
While gasoline and diesel prices are skyrocketing, ethanol still remains a smart financial alternative in some parts of Brazil. Federative units such as the Federal District, Goiás, Mato Grosso do Sul, Mato Grosso, Paraíba, Paraná, Minas Gerais and São Paulo continue to see alcohol as an advantageous option.
Hydrated ethanol, used directly as vehicle fuel, had an increase of 0,77%, reaching a national average of R$ 3,759 per liter. This price fluctuation has a direct impact on the choice of drivers with flex-fuel vehicles. According to ValeCard, for ethanol to compensate financially in relation to gasoline, the price of a liter of ethanol must be equal to or less than 70% of the price of a liter of gasoline.
The impressive jump in the price of diesel
While gasoline and ethanol showed notable increases, diesel surprised everyone with a significant increase of 10,06% in the third week of August. The average price per liter reached R$5,874, an increase of R$0,537 compared to the previous week.
Petrobras announced a substantial increase of R$0,78 in the price of a liter of diesel for distributors, which directly impacted the final price for consumers. However, the full transfer of this increase was gradual, due to old stocks at the service stations, which means that new readjustments may occur soon.
As with gasoline, regional variations in diesel prices are notable. São Paulo leads with the cheapest diesel in the country, at R$5,585 per liter, while Roraima had the highest average, at R$6,779. This discrepancy highlights the complexities of fuel transport and distribution logistics in a country of continental dimensions such as Brazil.
Challenges for drivers and companies
Increases in diesel prices pose a significant challenge for heavy vehicle drivers, transportation companies and industries that depend on this fuel for their operations. A volatility in diesel prices it is essential to constantly monitor variations and to search for strategies to minimize the financial impact of these abrupt changes. In an ever-evolving market, consumers must be prepared to make financially smart decisions when fueling their vehicles and managing their businesses.
