Ethanol and the revolution in sales, even with Petrobras going against the price of Brent oil and lowering the price of gasoline at distributors
O fuel market in Brazil is undergoing a turnaround significant, with ethanol gaining strength and forcing changes in refinery and plant policies. In September, the average price of ethanol corresponded to 68,4% of the average price of gasoline, marking the lowest level since October 2018, when it reached 67,9%. This fact triggered a series of events that are changing the dynamics of the fuel sector.
In the first nine months of this year, the price of ethanol fell 4,3%, while the average price of regular gasoline rose 15,9%. This has not gone unnoticed by consumers, who are now making more economical choices when fueling their vehicles.
The war between biofuel and gasoline in the Brazilian market is intensifying
Although last week was shorter due to the holiday, there was a notable increase in ethanol sales in the state of São Paulo. This was due to the competitive advantage of biofuel over gasoline at pumps in São Paulo, as well as the plants' firm stance in maintaining attractive prices. Between October 9th and 13th, the price of hydrated ethanol closed at R$2,1753 per liter, representing a drop of 0,17% compared to the previous week. Anhydrous ethanol closed at R$ 2,4366 per liter, with a decrease of 3,05% in the same period.
A competition between ethanol and gasoline varies from state to state in Brazil. In Mato Grosso, a liter of ethanol costs just 59,2% of the price of gasoline, making it the obvious choice for drivers. On the other hand, in Rio Grande do Sul, gasoline has an advantage with the ratio between the two fuels reaching 83%. In the capitals, the preference for ethanol is even more evident, with an average of 67,8%. This is especially notable in areas of the Southeast, such as São Paulo, with 61,8%, and the Central-West, such as Cuiabá, with 59,4%.
Petrobras reduces prices to face competition
A Petrobras surprised the market by announcing a 4% reduction in gasoline prices sold in its refineries. This decision is seen as a strategic move to recover space lost to ethanol. The company aims to expand its presence in the domestic fuel market and adapt to changes in consumer preferences.
However, on the other hand, the Petrobras increased the price of diesell at R$0,25 per liter, which directly impacts the price of diesel to the consumer. This change is the result of the mandatory mixture of 88% diesel A and 12% biodiesel, which affects the final price of the product at the pumps.
Petrobras' strategy is a response to the increase in ethanol sales, which grew 18,45% compared to the previous year, while anhydrous alcohol, mixed with gasoline, had a significant drop. This trend reflects the growing preference for more sustainable fuels in an increasingly environmentally conscious world.
This constantly evolving scenario demonstrates how fuel market dynamics can change quickly. You Consumers now have the opportunity to choose more economical fuels and ecologically responsible, while companies in the sector adapt to this new reality. The battle between ethanol and gasoline is far from over, and Brazilian drivers have a lot to gain from this competition.
