Brazil’s ethanol price drops below gasoline, becoming cheaper in June

In June 2026 Brazil’s ethanol became more economical than gasoline for motorists. The Veloe/Fipe fuel‑price monitor recorded the ethanol‑to‑gasoline price ratio at 67.9 % nationwide – the lowest level since March 2024 and under the 70 % benchmark that signals ethanol’s cost advantage. Ethanol’s average price fell 4.7 % to R$ 4.26 / L, while gasoline slipped only 0.3 % to R$ 6.72 / L. Diesel prices also declined (common diesel −2 %, S‑10 −1.4 %). The price shift was driven by a larger ethanol harvest and softer international oil markets.

Weekly data from ANP showed ethanol prices fell in 17 states and the Federal District, rose in seven states and were unchanged in Rio Grande do Norte. The national average dropped 0.49 % to R$ 4.08 / L. In São Paulo the price fell 0.26 % to R$ 3.81 / L, while Alagoas saw the steepest rise (+5.21 % to R$ 5.05 / L). Ethanol was more competitive than gasoline in eight states and the Federal District, with parity ranging from 54.23 % in Mato Grosso to 69.49 % in Santa Catarina.