According to StoneX, the consumption of gasoline at Brazilian gas stations is expected to remain almost unchanged in 2024, with roughly 46.3 billion liters, while hydrous ethanol use is projected to increase by 8.1% to 17.4 billion liters. The rise in ethanol consumption will limit the growth of gasoline demand, particularly with the expected increase in the ICMS tax rate on gasoline in February 2024. Due to the higher supply of ethanol in the 2024-25 harvest, the reduction in fuel price will encourage the substitution of fossil fuels with biofuel. StoneX also forecasts a 9.9% increase in total ethanol production in the 2024-25 sugarcane season.
Source: Reuters/UDOP (*Translated by Ia Niani)
ETHANOL CONSUMPTION WILL INCREASE BY 8% IN 2024, STONEX SAYS
Published On - 16 de November de 2023