Oil goes up last Friday (14/05) and Petrobras should increase, even more, the price of gasoline; Ethanol takes advantage and price should drop at mills

If oil continues to rise, Petrobras may increase the price of gasoline at refineries. On the other hand, ethanol should close the week with a reduction in plants

According to Abicom — Associação Brasileira dos Importadores de Combustíveis, the difference for gasoline was 2% and -3% for diesel. On the same day, according to Cepea, hydrated ethanol dropped by 0,85% at the plants in São Paulo, 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 (14/05), increasing the difference for derived fuel. If the sequence of rising crude oil prices in London continues, the Brazilian oil company Petrobras may increase the price of gasoline and diesel at refineries in the coming weeks.

Ethanol targets oil to make gasoline less competitive and not suffer pressure

The price of ethanol should go down at the mills by the end of the week. With the reduction or at most stability, following the decline in sales prices by distributors, biofuel should regain competitiveness with gasoline and not suffer pressure.

The potential for hydrous to not suffer further reductions, including the increase in production that comes with the progress of the crop in the Center-South, will be via gasoline readjustments.

Direct sale of ethanol from plants approved by the CCJ promises to stimulate competition and curb the increase in gasoline prices at gas stations

On May 5, the Constitution and Justice Commission (CCJ) of the Chamber of Deputies approved permission for the direct sale of ethanol from plants – bypassing distributors, to gas stations. The new measure can curb the increase in the price of gasoline and diesel, and ease the pockets of Brazilians.

It is still not possible to know exactly how much impact the direct sale of ethanol would generate on the price of biofuel in Brazil, since there is a lot of dependence on industrial logistics in each state. However, a study by Esalq-Log, in 2019, showed that the average cost of transporting ethanol in the state of São Paulo would drop by around 30% with direct sales.

There are also estimates that the concentration of production and distribution margins in the producer and increased competition between mill owners and distributors in the supply of fuel in the market could reduce prices of hydrous ethanol for the final consumer by up to 20 cents per liter.

Ethanol price reaches almost 5 reais at the pumps and filling up with gasoline becomes more advantageous in some Brazilian regions

After a year of the pandemic, the consumer is faced with a very different reality regarding the price of ethanol at gas stations. In March of last year, biofuel cost approximately R$ 1,99 per liter, but, currently, the reality is quite different and a liter of ethanol reached the absurd amount of almost R$ 5,00 at some service stations. fuels. According to information from the Sugarcane Industry Union (Única), the price of ethanol may continue to rise and should normalize from the first half of June.

With the price of ethanol skyrocketing at fuel station pumps, filling up with gasoline in the capital and in the state of São Paulo already pays more for drivers.

Although the consumer recognizes that gasoline is a polluting fuel compared to ethanol, the switch becomes inevitable from an economic point of view. "There's no way. For those who travel more than 200 kilometers a day, they have to change fuel”, says Adriano Ribeiro, who works as an app driver.

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