Brazil fuel prices decline for third consecutive month

Fuel prices for gasoline, ethanol, and diesel S-10 in Brazil saw a third consecutive month of decline in August, according to data from ValeCard. Ethanol experienced the most significant drop, falling 2.06% compared to July, while gasoline and diesel S-10 decreased by 0.68% and 0.51%, respectively.

Since May, ethanol has seen a cumulative reduction of 7.45%, outpacing the declines in gasoline (1.21%) and diesel S-10 (1.97%). On a national average, gasoline prices fell from R$ 6.821 to R$ 6.774 per liter, and ethanol dropped from R$ 4.365 to R$ 4.275.

However, recent weekly data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP) indicates that ethanol prices have begun to rise slightly in certain high-consumption states. In São Paulo, prices rose by 1% to R$ 3.65 per liter, while in Minas Gerais and Mato Grosso, prices increased by 3%. Despite these localized increases, ethanol remains economically advantageous for flex-fuel vehicle drivers, maintaining a price ratio significantly below the 70% threshold typically required for cost-effectiveness.