In the start of São Paulo’s 2023–24 season, average hydrous ethanol prices were around 15% lower. The seasonal flow of ethanol sales in comparison to gasoline was the primary cause of these variations. As a result of the March IGP-impact on the monthly Cepea/Esalq indices, the average price of hydrous ethanol decreased by 15.1% between April 2022 and March 2023, to BRL 2.83 per liter. The already-reduced anhydrous ethanol, which is blended with gasoline, fell 14.7% over the time to BRL 3.23 per liter. The price reductions were attributed to poor Brazilian sales, particularly of hydrous ethanol, which lost market share to gasoline at the pump. Anhydrous ethanol sales performed better than expected thanks to the number of exports, according to Cepea.
Source: Noticias Agricolas (*Translated by Ia Niani)