Oil Rises on Last Friday (05/14) and Petrobras Is Expected to Increase Gasoline Prices Further; Ethanol Gains Advantage and Price Is Expected to Drop at Plants

If Oil Prices Continue to Rise, Petrobras May Increase Gasoline Prices at Refineries. In Contrast, Ethanol is Expected to Close the Week with Decrease at Usinas

According to Abicom — Brazilian Association of Fuel Importers, the difference for less for gasoline was 2% and -3% for diesel. On the same day, according to Cepea, hydrated ethanol dropped 0.85% at São Paulo usinas, ending the day at R$ 3.091 per liter.

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The price of a barrel of oil rose 1.86% (US$ 68.15) last Friday (05/14), increasing the difference for the derived fuel. If the upward trend of crude oil in London continues, the Brazilian oil company Petrobras could increase gasoline and diesel prices at refineries in the coming weeks.

Ethanol Targets Oil to Enhance Its Competitiveness Against Gasoline and Avoid Pressure

The price of ethanol is expected to drop at the usinas by the end of the week. With the reduction or, at most, stabilization following the declines in sales prices from distributors, the biofuel should regain competitiveness against gasoline and not face pressure.

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The potential of hydrated ethanol to avoid further reductions, particularly due to increased production as the crop harvest progresses in the Center-South, will occur through gasoline adjustments.

Direct Sales of Ethanol from Usinas Approved by the CCJ Promises to Stimulate Competition and Curb Gasoline Price Increases at Fuel Stations

On May 5, the Chamber of Deputies’ Commission of Constitution and Justice (CCJ) approved the permission for direct sales of ethanol from the usinas – without going through distributors – to fuel stations. This new measure could curb increases in gasoline and diesel prices, alleviating the burden on Brazilian consumers.

It is still unclear exactly how much impact direct ethanol sales would have on biofuel prices in Brazil, given the significant dependence on industrial logistics in each state. However, a study by Esalq-Log in 2019 showed that the average transportation cost of ethanol in the state of São Paulo would decrease by approximately 30% with direct sales.

There are also estimates that concentrating production and distribution margins among producers and increasing competition between sugar millers and distributors in the offer of fuel in the market could reduce prices of hydrated ethanol for the final consumer by up to 20 cents per liter.

Ethanol Price Reaches Nearly 5 Reais at Pumps and Refueling with Gasoline Becomes More Advantageous in Some Brazilian Regions

After a year of the pandemic, consumers face a very different reality regarding ethanol prices at fuel stations. The biofuel previously cost around R$ 1.99 per liter in March last year, but currently, the reality is quite different as ethanol prices have absurdly approached R$ 5.00 in some fuel stations. According to information from the Sugarcane Industry Union (Única), ethanol prices may continue to rise and are expected to normalize by the first half of June.

With ethanol prices skyrocketing at fuel pumps, refueling with gasoline in the capital and the state of São Paulo is already becoming more favorable for drivers.

Despite consumers recognizing that gasoline is a more polluting fuel compared to ethanol, the switch becomes inevitable from an economic standpoint. “There’s no way around it. For those who drive over 200 kilometers a day, switching fuels is necessary,” says Adriano Ribeiro, who works as a ride-hailing driver.

141 Job Openings for Candidates with and Without Experience at Raízen Usinas. Submit Your Resume

Check below how to apply for job openings and work at the world’s leading ethanol producer’s usinas

Application: Make it happen in a place that respects people and their individuality. Apply for the open job positions and work at Raízen, the 4th largest company in Brazil and a global producer of ethanol, directly on the company’s website at this link and tag a friend who is looking for an opportunity.