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Lula wins presidential election in Brazil and gasoline and diesel prices rise again at gas station pumps; fueling with ethanol becomes more advantageous
The average price of a liter of gasoline, diesel and ethanol sold at service stations in the country rises consecutively after Lula being elected the new president of Brazil and consumers feel in their pockets again. Data on fuel values are from the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
According to the Agency, the average price of a liter of gasoline rose from R$4,98 to R$5,02 — an increase of 0,8%. The maximum value of fuel found at gas stations last week was R$ 7,54.
O liter of hydrated ethanol also rose: went from R$ 3,70 to R$ 3,79, an increase of 2,43% in the week. This is the sixth consecutive rise in fuel prices, after five months of decline. The highest value found by the agency was R$ 6,10.
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Already diesel had the second straight week of increase at the margin. The average price per liter rose from R$ 6,58 to R$ 6,59, up 0,15%. The highest value found this week was R$ 8,52.
Doing the math and considering consumption with ethanol, which is about 30% higher compared to gasoline, the fuel derived from sugar cane is today the most economically advantageous option in six states, against four in September: Bahia, Paraíba, Mato Grosso, Goiás, Minas Gerais and São Paulo, The above data are from the logistics and fleet management company Ticket Log, supplied exclusively to UOL Carros.
“It is worth noting that ethanol is capable of considerably reducing gas emissions responsible for climate change. For this reason, it is the most ecologically viable fuel for supply”, highlights Douglas Pina, general director of the fleet and mobility division of Edenred Brasil – owner of Ticket Log.
How is the calculation done?
The definition of states where ethanol is more advantageous is based on the IPTL (Ticket Log Price Index). The index indicates the cost in Reais per kilometer driven, taking into account the average price per liter of fuel and average consumption – set at 8,5 km/l for alcohol and 11,5 km/l for gasoline.
Of course, there are variations depending on the vehicle. It is necessary to consider that fuel of vegetable origin increases consumption by approximately 30%, with variation upwards or downwards.
For this reason, it is only worth using ethanol when the difference in price exceeds the reduction in range in percentage terms.
Petrobras prices are still cheaper compared to those practiced abroad.
The increases in the prices of gasoline and diesel sold to consumers after Lula was elected happen despite the fact that the fuels sold by Petrobras to distributors have not suffered an increase since June.
Petrobras has the International Price Parity (PPI) pricing policy. The model determines that the state-owned company charges, when selling fuel to Brazilian distributors, prices compatible with those practiced abroad.
According to latest calculations by the Brazilian Association of Fuel Importers (Abicom), the average difference in the price of diesel is 4% and, for gasoline, 2%. This means that Petrobras' prices are still cheaper than those practiced abroad.
