Ethanol or gasoline: know which fuel is more advantageous to supply

The drop in the price of ethanol is already being felt at the pump and may raise a question for some drivers: is it more advantageous to fill up with alcohol or gasoline?

According to data from ANP, Ethanol had an accumulated drop of 6% in one month, which led the national average per liter of fuel to drop from R$5.10 to R$4.79.

Gasoline also dropped, but with less force. It went from an average of BRL 6.67 to BRL 6.61 within a month.

The economics analyst CNN Priscila Yazbek explains that to find out whether it is more worthwhile to consume ethanol or gasoline at gas stations, it is necessary to make a calculation involving the price of both fuels.

“Ethanol has 70% of the efficiency of gasoline, so the calculation that a person has to make is to divide its value by the value of gasoline. If the result is above 0.7, alcohol is costing more than 70% of the value of gasoline and it is not worth it”, he explained.

“But if it costs less than 70%, that is, the result of the bill is less than 0.7, then it is more favorable to consume ethanol”, he added.

Currently, based on the prices that are found at the pumps, gasoline is still worth more than ethanol, even with the considerable decrease in the latter.

“Using the account of 0.7, the national average today, it is more worthwhile to fill the vehicle with gasoline, because the account gives 0.72”, said Yazbek.

The analyst considered that, in practice, an engine may work better for gasoline or alcohol, depending on its model, and it is necessary to check the vehicle’s manual to know the best fuel to be consumed.

O CNN Brasil Business analyzed the average value of five states as an example: São Paulo, Rio de Janeiro, Minas Gerais, Bahia and Pernambuco.

In all of them, it is better to fill up with gasoline, because in all of them the result of the account is greater than 0.7.

“Even with the drop in the price of ethanol, it is still not advantageous at the moment, as it rose 63% in 2021, the highest increase in our inflation of the year, explained by the worst drought we have had in the country in 90 years”, concluded Yazbek. .

*Posted by Fabricio Julião

Source: CNN Brasil

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