ETHANOL GENERATES SAVINGS OF R$ 2,5 BILLION AND KEEPS GASOLINE PRICES DOWN.

Ethanol mitigated fuel inflation in Brazil in March amid higher oil prices. Gasoline rose from BRL 6.30 to BRL 6.78/liter, while hydrated ethanol remained stable at BRL 4.61–4.70/liter. Fuel parity stood at 69.3% in early April, below the 73% threshold, preserving ethanol’s price advantage. At the producer level, ethanol prices in São Paulo declined from BRL 2.94 to BRL 2.89/liter. The biofuel also reduced import needs: without ethanol supply, Brazil would have required ~2.3 bn liters of gasoline imports in March, adding over BRL 2.2 bn in costs. Combined savings at the pump and avoided imports exceeded BRL 2.5 bn. Supply stability was supported by domestic harvest conditions and expectations of a record 2026 crop, alongside longstanding policies on blending, decarbonization, and biofuel expansion.
Source: Revista Cultivar