Ethanol prices in Brazil drop to lowest levels since July 2024

Ethanol prices in Brazil have seen a significant decline, reaching their lowest levels since July 2024. In the Southeast region, the average price dropped by over 4%, settling at approximately R$ 3.99 per liter.

São Paulo recorded the lowest average price for the biofuel in the country, with some reports placing the average at R$ 3.80 and others at R$ 3.70. Other states like Minas Gerais and Mato Grosso also reported highly competitive rates. This downward trend is attributed to the peak of the sugarcane harvest, which has increased market supply.

The reduction in ethanol costs has enhanced its economic advantage over gasoline. In several states, including São Paulo, Mato Grosso, and Minas Gerais, the cost-benefit ratio for ethanol remains well below the 70% threshold considered favorable for consumers.