Fueling with ethanol is more economical in 10 states, UNICA points out

According to the latest data from the National Oil, Gas and Biofuels Agency (ANP), analyzed by the Sugarcane and Bioenergy Industry Union (UNICA), the price ratio of ethanol to gasoline is 62.9 %, giving an advantage to biofuel.

The data shows that the national average price of regular gasoline at gas stations across the country was R$5.63 per liter. The price for hydrated ethanol, used directly in the tank, was R$ 3.54 per liter. UNICA analyzes show that consumers save when filling up with ethanol in ten states in Brazil.

Ethanol becomes more economically advantageous from a ratio of 70%, but it is important to highlight that this percentage varies according to the car model, the driver’s profile and the conditions of the route. According to data from the Brazilian Vehicle Labeling Program (PBEV/INMETRO), depending on the vehicle, the decision to choose biofuel can be made based on a price ratio of up to 75%.

In the six states with the highest consumption (GO, MT, MS, MG, PR and SP) — which represent 85% of the market — price parity has been below 65% for almost two months. In some regions, ethanol has been more advantageous than gasoline since May this year.

“The price of hydrated ethanol at the pump has been highly attractive in the country’s main markets for more than three months. Looking at the history of consumption, when parity reaches this level, consumers increase their demand for ethanol”, says Luciano Rodrigues, director of market intelligence at the Sugarcane and Bioenergy Industry Union (UNICA).

UNICA also highlights that unlike other years, when only the price guided consumer behavior, environmental concerns have become increasingly important when it comes to refueling. A flex engine, fueled 100% with ethanol, emits 70% less carbon dioxide, a greenhouse gas, than one that runs on C gasoline with 27% anhydrous ethanol.

Increased production of hydrated ethanol

Sugarcane crushing in the first half of October recorded growth of 17.64%, compared to the same period in the last cycle. 32.77 million tons were processed against 27.85 million. Crushing reached 525.99 million — growth of 14.47%.

In this same period, ethanol sales totaled 1.26 billion liters — an increase of 4.63% compared to the same period in the 22/23 harvest. The volume of anhydrous ethanol sold in the period was 438.05 million liters – a drop of 8.52% – while hydrated ethanol registered sales of 825.72 million liters – a growth of 13.27%, according to UNICA .

(*Under the supervision of Márcia Barros)