Fuel markets shift as ethanol prices fluctuate in Brazil and Guatemala

Fuel markets in Brazil and Guatemala are experiencing shifts due to ethanol integration and price fluctuations. In Brazil, the national average price for hydrated ethanol remained stable at R$ 3.91 per liter for the week of August 16–22. While 14 states reported price decreases, ethanol maintained a competitive advantage over gasoline in several regions, including São Paulo and Mato Grosso, where the price parity remained below the 70% threshold.

In the state of São Paulo, ethanol prices have seen varied movements; while some indicators showed a fifth consecutive week of decline in the spot market, others reported an 11% cumulative increase in August due to lower availability and higher seller firmness. Additionally, the National Council of Treasury Policy (Confaz) set a reference price for ethanol in Rio Grande do Norte at R$ 5.25 per liter, one of the highest in the country.

In Guatemala, the introduction of E10—a regular gasoline blend containing 10% ethanol—has begun to impact retail prices. The Guatemalan Association of Gasoline Sellers (Ageg) reported a price reduction of approximately Q1 per gallon for stations already utilizing the E10 blend compared to pure gasoline. This decrease is attributed to both the lower cost of ethanol and a reduction in the petroleum distribution tax applied to the ethanol portion of the blend.