After Petrobras Succumbs to Government Pressure and Fuel Experiences Weeks of Glory, Mills Raise Ethanol Prices, Gasoline and Diesel Rise Again, Disturbing Consumers Like Taxi Drivers, Truck Drivers, and App Drivers

After Weeks of Truce, Gasoline and Diesel Prices Rise Again and Consumers Can Expect More Increases in the Coming Weeks

After Petrobras yielded to Government pressure and fuel experienced weeks of glory, last week, the average price of a liter of gasoline at gas stations in Brazil registered an increase of 0.49% compared to the previous week, reaching a price of R$ 5.490, representing an increase of R$ 0.027 per liter. Diesel saw an increase of 0.66%, reaching an average of R$ 5.436 per liter. On the other hand, despite the increase at the plants, the price of hydrated ethanol showed a decrease of 1.03%. This data was obtained from transactions made at over 25,000 establishments accredited by Vale Card across the country.

When analyzing the prices practiced in different regions of the country, it was found that São Paulo has the lowest prices for gasoline, with an average price of R$ 5.286 per liter. On the other hand, Acre and Rio Grande do Sul led the price increases, with rises of 5.80% and 2.95%, respectively.

In the case of diesel, Rio Grande do Sul stood out as the state with the most advantageous prices, registering an average of R$ 5.048 per liter. On the other hand, ethanol proved to be financially advantageous in Mato Grosso.

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Gasoline Surges in 20 Brazilian States

Data from the first week of June 2023 reveals that gasoline prices increased in 20 of the 27 federative units in Brazil. The states with the highest increases were Acre, with an increment of 5.80%, followed by Rio Grande do Sul, with 2.95%, and Pernambuco, with 2.84%. Conversely, the state of Ceará recorded the largest decrease, with a reduction of 1.70% in gasoline prices.

Considering the average prices practiced in the states, Acre led with the highest price, reaching R$ 6.685 per liter.

According to Brendon Rodrigues, Head of Innovation and Portfolio at ValeCard, the increase in the price of gasoline occurred after three consecutive weeks of decline, resulting from changes in the ICMS collection on fuels, which came into effect on June 1st. He also emphasizes that consumers can expect more increases in the coming weeks, as there is pressure from anhydrous ethanol, which after weeks of decline is rising again and represents 27% of the composition of common gasoline.

This information highlights the importance of closely monitoring fuel prices, as they are subject to significant fluctuations, and reinforces the need for consumers to be prepared for possible increases in the upcoming periods. Check below the average price by State:

Rio de Janeiro Residents Can’t Escape the Increase and Start June Paying More for Gasoline

At the beginning of June, gas stations in the city of Rio de Janeiro recorded an increase of 0.24% in the average price of a liter of gasoline across different neighborhoods in the capital. Castelo stood out as the most expensive neighborhood for refueling, with an average price of R$ 6.093 per liter. Following were Flamengo (R$ 5.727) and Urca (R$ 5.690) as the neighborhoods with the highest prices.

On the other hand, Santíssimo was the neighborhood that offered the cheapest liter of gasoline in the municipality, with a price of R$ 4.945. Irajá (R$ 5.082) and Méier (R$ 5.119) also had lower prices for consumers.

If you are a resident of the area, it is important to pay attention to the prices practiced at gas stations, as they can vary significantly from one neighborhood to another in the city of Rio de Janeiro. Check below the prices by neighborhood:

Despite Increase at the Plants, Ethanol Price Falls 1.03% in the First Week of June, Becoming a Financially Advantageous Option Compared to Gasoline in Mato Grosso

According to the CEPEA/ESALQ indicator, after weeks of decline, the price of anhydrous ethanol at the producing plants in São Paulo recorded an increase of 1.51% in the period from May 29 to June 2.

As explained by the specialist below, the increase recorded compared to the previous declines still allowed the average price of hydrated ethanol, used directly in vehicles, to operate with a decrease of 1.03% nationwide, averaging R$ 3.854 per liter.

Brendon Rodrigues, Head of Innovation and Portfolio at ValeCard, explained that this is the fourth consecutive week of reduction in prices of hydrated ethanol, resulting from the gradual pass-through of the reduction of this fuel by the producing plants. He emphasizes that between May 1 and 19, the producing plants in São Paulo reduced the price of a liter of hydrated ethanol by an impressive 17.93%, which explains the continued decline even with the increase recorded in the last two weeks.

Data from the Advanced Center for Applied Economic Studies at Esalq reveals that the prices of hydrated ethanol at the plants in São Paulo showed an increase of 2.69% in the last week of May and 1.69% in the first week of June.

According to ValeCard, for the use of hydrated ethanol to be financially advantageous compared to gasoline, taking into account factors such as the individual autonomy of each vehicle, the price of the liter of renewable fuel must be equal to or less than 70% of the price of the liter of fossil fuel.

Using this methodology, in the fourth week of May, refueling with ethanol was advantageous in Mato Grosso, where the price of ethanol corresponded to 65% of the gasoline price. This means that consumers in the state were able to save by opting for ethanol as fuel. Check below the comparison between gasoline and ethanol prices: