INCREASED ETHANOL BLEND IN GASOLINE COULD LOWER PRICES

The government’s suggested rise in the amount of anhydrous ethanol in gasoline from 27% to 30% could help gasoline C, which is offered to consumers at the pump, have a lower price. Over the following two months, manufacturers will test this suggestion. The net price of anhydrous ethanol sold by São Paulo mills for the week (December 16 to 20), including federal taxes, was BRL 3.15 per liter. It is less than the BRL 3.95 per liter price of pure gasoline that the refineries sell (already taking federal taxes into account). Apart from the increasing supply of anhydrous ethanol during the sugarcane harvest, the tax differential guarantees this advantage.

Sources: ÚNICA/ANP/Globo Rural (*Translated by Ia Niani)