Brazil ethanol prices fall in 20 states, become more competitive

Average prices for hydrated ethanol in Brazil fell 2.51% to R$ 4.27 per liter, according to the National Agency of Petroleum, Natural Gas and Biofuels (ANP). The decline occurred in 20 states, while four states and the Federal District saw price increases and two states saw no change.

The lowest price recorded during the week was R$ 2.98 per liter in São Paulo, which also posted the lowest average state price at R$ 3.99. The highest price was R$ 6.59 per liter in Pernambuco, and the highest average state price was R$ 5.84 in Amapá. Ethanol was more competitive than gasoline in seven states and the Federal District, with an overall parity of 64.5% against gasoline.

Industry executives note that ethanol can remain competitive even when parity exceeds 70%, depending on vehicle compatibility.