Refueling with ethanol brings advantages over gasoline only when the price at the pumps represents 70% of the price of this fuel. In the last month, it was found that it was only advantageous to supply alcohol in 4 states

As a result of the rise in gasoline prices, the supply of alcohol increased. However, it is still more advantageous to fill up with gasoline in most states. According to the ANP, filling the car's tank with ethanol last month only paid off in São Paulo, Minas Gerais, Mato Grosso and Goiás.

The advantage of alcohol is calculated considering that alcohol has about 70% of the calorific value of gasoline. Thus, to find out whether ethanol is more advantageous than gasoline, just multiply the value of a liter of gasoline by 0,7. If the value is lower than the liter of ethanol, it means that filling up with gasoline will be more advantageous. Otherwise, ethanol will be the best option.

At the end of last month, the average price of gasoline was more competitive than that of ethanol in 22 states and the Federal District, leaving out only São Paulo, Minas Gerais, Mato Grosso and Goiás.

According to G1, in São Paulo, the state that most produces and consumes fuel, a liter of ethanol represented a parity of 68,34% compared to the average price of gasoline. In Rio de Janeiro, the average value of ethanol corresponded to 76,88% of the price of gasoline.

The price of a liter of alcohol represented 68,7% of the price of gasoline in the average of more than 4 thousand service stations surveyed by ANP all over Brazil. This means that ethanol has a small advantage. It is worth remembering that this relationship varies between stations and cities.

Increase in ethanol sales

According to the Sugarcane Industry Union (Unica), ethanol sales increased by 17,33% in the first half of March, compared to the second half of February. It is estimated that the price of ethanol may decline in the coming months as a result of the new sugarcane harvest, which began this month.

According to the Extended National Consumer Price Index 15 (IPCA-15), which shows a preview of official inflation in the country, gasoline accumulates an increase of 27,68% in 1 year, while ethanol registers an increase of 24,27%.

In the last month, fuel prices increased at service stations in Brazil after a tough readjustment, which was announced by Petrobras in March.

It is worth mentioning that the value of gasoline for the consumer also depends on the exchange rate and the oil, since since 2016 Petrobras has adopted the international parity call, transferring oil increases in the international market to the amount charged in its refineries.

The price of alcohol is also reflected in the price of gasoline, since this fuel must contain 27% anhydrous ethanol in the mixture of gasoline sold at service stations.

How to calculate whether it is more advantageous to fill up with alcohol or gasoline

To identify which fuel is worth more at the pump, the driver must multiply the value of the liter of gasoline by 0,7. If the result is less than the liter of alcohol, it is better to fill up with diesel. Otherwise, ethanol is the best option.

Logo:

• Multiply the value of the liter of gasoline by 0,7;
• If the result is lower than the price of a liter of ethanol: gasoline is more advantageous;
• If the result is higher than the price of a liter of ethanol: alcohol is the best option.