Rising Ethanol Prices Make Brazilians Rethink Fuel Choices

Written by Paulo Nogueira

Published on 07/02/2021 at 16:26

Carro em abastecimento com Etanol/ Fonte: Pixabay

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Those who have a flex-fuel car always face the same question: should they fill up with gasoline or ethanol? The advantage of having both options can bring savings at the pump, but some calculations need to be made.

Gasoline, generally more expensive at gas stations throughout Brazil compared to alcohol, typically offers a higher average in terms of kilometers per liter. However, depending on the price difference between the two types of fuel, this average may not be financially justifiable.

There are several advantages of ethanol as fuel, which lead many people to choose it for refueling their vehicles. However, the recent spike in ethanol prices is causing Brazilians to rethink this option.

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Gasoline Price Increase Causes Ethanol Prices to Rise

In mid-2020, Brazilians saw fuel prices begin to rise. Amid a pandemic, finances are assessed more cautiously, and saving on fuel has become a daily pursuit, given that the cost of living has been increasing during these months of uncertainty.

In 2021, gasoline already shows an average increase of R$ 0.10 per liter, which has been “pulling” up the price of ethanol. Petrobras has already implemented two increases in gasoline prices at refineries in less than 10 days, along with an increase in the ICMS (Tax on Circulation of Goods and Services) for petroleum-derived products scheduled for this February.

The high price of gasoline has increased the demand for ethanol, being a cheaper alternative, which has also led to a rise in the price of this fuel. Ethanol prices have already increased in 19 Brazilian states, in addition to the Federal District. In 5 other states, prices have dropped, with stability in the state of Alagoas.

The data comes from the National Agency of Petroleum, Natural Gas and Biofuels (ANP), which conducted a survey nationwide. São Paulo, the main ethanol-producing state in Brazil, also being the state that consumes the most and hosts gas stations throughout the country, saw ethanol prices increase by 0.95% compared to the 0.84% rise experienced in most of the national territory.

Rio Grande do Norte had the highest increase, at 4.30%, while Roraima had the largest drop, with a 2.29% decrease in ethanol prices.

How to Determine Which Fuel is More Advantageous?

In general, gasoline efficiency is higher than that of alcohol, as it requires a larger quantity to achieve the same efficiency as gasoline. However, with the price difference between the two, even with “lower” efficiency, it may be that ethanol is more economical or incurs lower costs for the driver.

The calculation to determine which fuel is more financially advantageous is relatively simple. It is necessary to divide the price of ethanol by the price of gasoline. If the result is equal to or less than 0.7, it is more advantageous to refuel with ethanol. Otherwise, it is more advantageous to refuel with gasoline.

Other factors can influence the choice of fuel, such as the average consumption of the car, the way it is driven, and its tuning can also have an impact. Knowing the vehicle well is essential, as there are vehicles that perform better on ethanol than on gasoline, unlike most.

Other driving habits can influence consumption, such as shifting gears at the wrong time, carrying too much weight, coasting down hills, not properly and regularly inflating tires, braking harshly, accelerating unnecessarily, and constant use of air conditioning, among others.

How to Know if My Vehicle Performs Better on Ethanol or Gasoline?

To determine if your vehicle performs better when fueled with ethanol or gasoline, the test is also simple. Fill the tank completely with gasoline and reset the odometer. When the tank is nearly empty, record the final mileage. This total, divided by the total capacity of your tank, will give you the average kilometers the car can travel per liter.

For example, if your car has a tank capacity of 45 liters, and you traveled a total of 680 kilometers with gasoline, the average will be 15.11 kilometers per liter. After that, fill the tank with ethanol and repeat the process, comparing the results.

By conducting this test, it is possible to choose the fuel more efficiently for your car, in addition to comparing cost-benefit.

By: Andreia Silveira, from Smartia.com.br.

Rising Ethanol Prices Make Brazilians Rethink Fuel Choices

Gasoline Price Increase Causes Ethanol Prices to Rise

How to Determine Which Fuel is More Advantageous?

How to Know if My Vehicle Performs Better on Ethanol or Gasoline?

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Rising Ethanol Prices Make Brazilians Rethink Fuel Choices

Gasoline Price Increase Causes Ethanol Prices to Rise

How to Determine Which Fuel is More Advantageous?

How to Know if My Vehicle Performs Better on Ethanol or Gasoline?

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