As diesel prices rise, ethanol becomes an economical alternative to gasoline.

The year 2023 has proven challenging for fuel consumers, particularly those who depend on diesel. In September, the average price of regular diesel and S-10 diesel increased by 9,9% and 9,2%, respectively, compared to August. According to data from the Veloe Overview of Mobility Indicators, this is the highest value since January of the same year.

Variations in the fuel scenario

Even with the significant increase, diesel presents a decrease in its price accumulated in the year, with a reduction of 4,6% for regular diesel and 4,2% for S-10 diesel. If we analyze the accumulation of the last twelve months, the average prices of these fuels had an even more significant drop, of 10,1% and 9,6%, respectively.

On the other hand, gasoline had a more modest increase in September, with growth of 2,1% for both the regular and additive versions. However, this modesty is not reflected in the year to date, with regular gasoline showing an increase of 16,9% and added gasoline following closely with a 16,2% increase.

Regional gasoline prices

Acre stood out with the highest values ​​per liter of regular gasoline, reaching R＄6,753, followed by its capital, Rio Branco, with R＄6,637 per liter. On the other hand, São Paulo presented the most affordable values, R＄ 5,735 per liter, followed by its capitals Campo Grande (R＄ 5,641) and São Luís (R＄ 5,654). As for the monthly variation, the Southeast and Central-West/North regions had the biggest increases, both with an increase of approximately 2,5%.

The rise of ethanol

With constant increases in gasoline prices, ethanol is emerging as a more economical alternative for flex-fuel vehicles. Throughout 2023, while regular gasoline saw an increase of 15,9% in its average price, ethanol saw a reduction of 4,3%. This resulted in ethanol costing just 68,4% of the value of gasoline, a proportion not seen since October 2018.

In general, in the capitals, ethanol is even more competitive, costing only 67,8% of the price of gasoline. Highlights for São Paulo and Mato Grosso, where this percentage drops to 62,1% and 59,2%, respectively.

For a more detailed analysis, check out the Panorama Veloe Fuel Price Monitor.

Getting to know Veloe

Veloe, a joint initiative between Banco do Brasil and Bradesco, is a reference in the mobility and fleet management market. Created in 2018, the platform seeks to simplify mobility and optimize fleet management. Veloe is accepted on all toll roads in Brazil and in more than 2.300 commercial establishments. With significant partnerships, such as C6 Bank, BTG+, Digio and Unidas, and collaboration with Fipe, Veloe demonstrates its vocation for providing relevant information, promoting well-founded decisions. In 2023, the company also launched Veloe Go, aimed at services for legal entities. Requesting Veloe and Veloe Go services is easy through the official website.

Source: Information for the Press – FSB Comunicação – Mariana Kovelis.