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After Various Reductions in the Price of Gasoline, Fuel Starts to Rise as Ethanol Proves Advantageous in Several States
October will end with the price of gasoline at R$ 5.24, showing a decrease of 1.67% compared to September. However, after several consecutive drops in the price of fuel recorded across Brazil since July, some states are already starting to register significant increases.
In Rio Grande do Norte, for example, gasoline increased by 4.82% and in Bahia the rise was 2.72%. In Sergipe, there was a 1.64% increase in the price of fuel. During the same period, the price of ethanol also registered an increase, of 4.13% in São Paulo, 1.44% in Minas Gerais, 1.02% in Rio de Janeiro, 1.72% in Mato Grosso, and 1.34% in Goiás.
When making the calculation and considering the consumption of ethanol, which is about 30% higher than gasoline, the sugarcane-derived fuel is becoming the more economically advantageous option in six states, compared to four in September: Bahia, Paraíba, Mato Grosso, Goiás, Minas Gerais, and São Paulo.
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Advantage of Using Ethanol as Fuel
It is worth noting that ethanol can greatly reduce emissions of gases responsible for climate change, meaning it is the most ecologically viable fuel for supply, according to Douglas Pina, general director of the fleet and mobility division of Edenred Brazil – owner of Ticket Log.
Pina adds that the city with the cheapest ethanol in the country is Chapada dos Guimarães (MT), where the liter is sold on average for R$ 3.175; Ourilândia do Norte, in Pará, has the most expensive ethanol, sold at R$ 5.980.
Meanwhile, Igrejinha (RS) has the cheapest gasoline, costing R$ 4.388 per liter, while Marechal Thaumaturgo, in Acre, sells the most expensive gasoline (R$ 9 on average).
IPTL Base
The definition of the states where ethanol is most advantageous is based on the Ticket Log Price Index (IPTL). This index indicates the cost in reais per kilometer traveled, taking into account the average price of the liter of fuel and the average consumption – set at 8.5 km/l for alcohol and 11.5 km/l for gasoline.
It is important to consider that the plant-based fuel increases consumption by approximately 30%, with variations upward or downward. For this reason, it is only worth using ethanol when the price difference exceeds the percentage reduction in range.
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