English 
Francês 
Alemão 
Italiano 
Japonês 
Norueguês 
Portuguese 
Spanish 
4 min of reading 
Fuel Becomes More Expensive Every Day. Ethanol Price Hits Nearly R$ 5 and Gasoline Exceeds R$ 6; Brazilians Are Stunned and Don’t Know What to Do
The week started with a hit to the consumers’ wallets. Several gas stations raised their prices of gasoline to R$ 6.099 per liter, leaving many drivers astonished. There are two justifications: the skyrocketing prices of ethanol and the suspension of discounts given by distributors.
Read Also
- Ethanol Made from Coconut Peels, Developed by a Brazilian University, Could Change the World of Renewable Energy
- Demand for Ethanol and Gasoline Plummets While Diesel Consumption Soars in Brazil
- Hydrogen-Ethanol Mixture Promises to Revolutionize Efficiency and Reduce Fuel Consumption in Flex Engines
- Ethanol Price Soars at the Pumps as Consumption Grows and Mills Extract More Sugar; Consumers End Up Paying the Bill
- Ethanol Price Evaporates at the Mills and Exporting the Biofuel to the U.S., the World’s Main Ethanol Consumer, Becomes a Very Advantageous ‘Salvation’
- Gasoline Prices May Surge and Ethanol May Run Out Due to Shortage of Anhydrous Alcohol at the Mills; Shortages Will Further Impact Brazilians’ Wallets Still Further Impact Brazilians’ Wallets
The president of the Retail Trade Union of Fuels and Lubricants of the Federal District (Sindicombustíveis-DF), Paulo Tavares, stated that just last weekend, the price of ethanol increased by R$ 0.30 per liter. The impact on gas pumps and consumers’ wallets was R$ 0.20 per liter.
“It was the second weekend of ethanol price increases. As alcohol represents 27% of the gasoline blend, there is no way not to pass on the costs (to drivers),” says Tavares. He emphasizes that the strong rise in ethanol prices is due to the crop failure of sugarcane caused by drought.
-
Petrobras finds high-quality oil in the pre-salt at 113 km from RJ and reignites expectations about strategic reserves in the Campos Basin.
-
Ocyan opens registrations for startups focused on innovation in the oil and gas sector and will select projects for Innovation Day with the support of Nexio.
-
Petrobras announces new oil discovery in the pre-salt of the Campos Basin and reinforces Brazil’s prominence with high-quality reserves that can increase production and energy revenues.
-
Alert in the fuel market: Analysts and a former director of ANP warn that oil prices may worsen in the coming months due to global instability.
The situation regarding fuel prices in Brazil is critical, according to Tavares. He mentioned that there are gas stations in various cities in the countryside without gasoline and ethanol.
And it seems that the chaos will continue to grow, with no perspective of normalization anytime soon. The new sugarcane harvest, which should have started in May, will only reach the mills in July.
Therefore, consumers should prepare for further price increases for ethanol and gasoline. “This time, the blame is not on Petrobras. The problems lie in the alcohol market,” stresses the president of Sindicombustíveis-DF. There are gas stations in Brasília where the price of ethanol exceeds R$ 4.70.
Oil Prices Rise Last Friday (05/14) and Petrobras May Further Increase Gasoline Prices; Ethanol Gains Advantage and Prices Are Expected to Drop at the Mills
The price of a barrel of oil rose by 1.86% (US$ 68.15) last Friday (05/14), widening the gap for its derived fuel. If the upward trend in crude oil prices in London continues, the Brazilian oil company Petrobras may increase gasoline and diesel prices at refineries in the coming weeks.
This way, ethanol aims at the rising oil prices to outcompete gasoline and avoid pressure. It is expected that after consecutive increases, ethanol prices will drop at the mills by the end of the week. With a reduction, or at the very least stabilization, following decreases in sales prices from distributors, the biofuel should regain competitiveness with gasoline and avoid pressure.
Direct Sale of Ethanol from Mills Approved by the CCJ Promises to Stimulate Competition and Curb the Increase in Gasoline Prices at Fuel Stations
On May 5, the Commission on Constitution and Justice (CCJ) of the Chamber of Deputies approved the permission for the direct sale of ethanol from mills – bypassing distributors, directly to fuel stations. This new measure could curb the increase in gasoline and diesel prices and relieve Brazilians’ wallets.
It is still not possible to know exactly how much the direct sale of ethanol would impact the price of the biofuel in Brazil, as there is a significant dependency 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 concentrating the margins of production and distribution with the producer and increasing competition among millers and distributors in the market could reduce – by up to 20 cents per liter – the prices of hydrated ethanol for the end consumer.
Seja o primeiro a reagir!