Reduction of ICMS on Fuels Causes Drop in Ethanol Prices and Drivers Celebrate, According to ANP Data

After The Approval Of The Reduction Of The ICMS Rate Ceiling On Fuels In Brazil, The ANP Released Data On Ethanol Prices In Brazil, Which Plummeted Last Week, Causing A Good Time For The Final Consumer In The Country.

For This Monday, (07/18), The Scenario Of Fuel Prices In Brazil Is Becoming More Stable And Favorable To The Final Consumer, As The Data From The National Agency Of Petroleum (ANP) Shows That The Reduction Of The ICMS Rate Ceiling (Tax On The Circulation Of Goods And Services) On Fuels Has Been Effective In The Country. Thus, Ethanol Now Presents Quite Competitive And Decreasing Prices In Much Of The National Territory.

Ethanol Prices In The National Territory Plummet After The Reduction Of The ICMS Rate On Fuels And The Scenario Becomes More Favorable

The Brazilian Fuel Scenario Has Gone Through Moments Of Great Instability In Recent Weeks, Due To The High Price Adjustments Made By Petrobras. However, With The Approval Of The Federal Government For The Reduction Of The ICMS Rate On Fuels In The National Territory, Prices Have Been Gradually Decreasing, And This Week Has Been Very Beneficial For Brazilian Drivers. 

And, Although Most Fuels Have Experienced A Drop In Prices, Ethanol Was The Only One That Saw A Truly Significant Reduction Compared To Previous Values. ANP Data Shows That, After 25 Brazilian States Complied With The Decision To Reduce The ICMS On Fuels In The Country, The Price Of Ethanol Has Become The Most Attractive. Thus, Last Week, The Average Price Was Reduced By 4.3%, With Pump Prices Reaching R$ 4.520 Per Liter, Considering Gas Stations Throughout The National Territory.

Among The States That Achieved A Good Reduction In Fuel Prices, The Region Of Goiás Was The Most Benefited, As It Recorded The Largest Drop In Price, With A Total Reduction Of 7.69%, From R$ 4.615 To R$ 4.260 Per Liter.

On The Other Hand, Drivers And Consumers In The State Of Amapá Are Not At All Satisfied With The Final Prices, Even With The ICMS Reduction On Fuels, Since The Price Of Ethanol Did Not Change In This Last Week In The Northern State.

Significant Drop In Ethanol Prices Is Making It The Best Alternative Among Fuels For Drivers In The National Territory

Although It Recorded The Largest Price Reduction Compared To Previous Prices, Goiás Was Not The Leader In Terms Of The Lowest Price, As The Minimum Price Of The Biofuel Reached R$ 3.630 Per Liter In Mato Grosso. On The Other Hand, The Northern Region Of The Country Continues Not To Benefit From The Prices And The State Of Acre Reported The Highest Ethanol Price This Last Week, R$ 7.290 Per Liter.

However, The Reduction Of ICMS On Fuels Has Had A Great Impact On The National Territory, And When Considering A One-Month Period, Ethanol Showed A drop Of 11.08% In The Country, With Mato Grosso Being A Major Beneficiary, As It Recorded The Largest Percentage Decrease, With A 17.82% Monthly Price Reduction Of The Biofuel.

Thus, The Use Of Ethanol Compared To Other Fuels Is Becoming Increasingly Advantageous In Much Of The National Territory, And The States With The Greatest Highlights In This Comparison Are: São Paulo, Minas Gerais, Mato Grosso, Mato Grosso Do Sul, Paraná, And Piauí, According To Data From The Ticket Log Price Index (IPTL).