Brazil ethanol price drops to yearly low of R$4.48 per litre

The price of hydrated ethanol in Brazil fell 3.83% in the second week of May, reaching an average of R$4.48 per litre – the lowest level of the year. The decline is linked to the advancing sugar‑cane harvest in the Centre‑South region and a higher domestic supply, according to the Veloe fuel‑price monitor prepared with technical support from the Fundação Instituto de Pesquisas Econômicas (Fipe).

Compared with the mid‑April peak of R$4.82, the price fell about 7%, making ethanol more attractive than gasoline. The ethanol‑to‑gasoline price ratio dropped from 71.7% to 69.7%, slipping below the 70% benchmark used for flex‑fuel vehicles. Gasoline and diesel also eased modestly, down 0.27% and 1.27% respectively, to R$6.76 and R$7.21 per litre.

The five states with the largest absolute price drops were Goiás (‑4.9%), Distrito Federal (‑4.6%), São Paulo (‑4.7%), Minas Gerais (‑4.2%) and Mato Grosso (‑4.1%). Veloe, a mobility and fleet‑management firm owned by the Elopar holding (controlled by Banco do Brasil and Bradesco), highlighted the influence of harvest progress, oil prices, exchange rates and plant output mixes on the market.