Considering the restoration of federal tax collection at the end of this month, which should increase the biofuel’s comparative advantage against gasoline, StoneX sees Brazilian gas station consumption of hydrous ethanol increasing by 5.4% this year. The organization anticipates that, in 2023, 16.4 billion liters of ethanol will be consumed, up from 15.5 billion liters in 2022. The amount of gasoline consumed should equal the 43 billion liters from the previous year. “The projected reintroduction of the rates in March/23 should further encourage the consumption of hydrous, given the tax burden for gasoline tends to be larger”, StoneX said.
Sources: Reuters/Forbes Brasil (*Translated by Ia Niani)