Hydrous ethanol's parity at Brazilian pumps improves on weaker ex-mill prices
Over the February 26-March 4 period, the price of hydrous ethanol at pumps in the southeast of Brazil averaged 74.1% of gasoline prices, compared with 75.1% the week before and 76.1% four weeks prior, data from the National Petroleum Agency (ANP) showed.
Hydrous prices averaged Real 2.759/liter at the pump, compared with Real2.798/liter the week before, ANP said.
At this level, hydrous ethanol is still not competitive with gasoline because it remains above the 70% threshold.
Hydrous fuel ethanol is used in Brazil as a standalone biofuel (E100) by flex-fuel vehicles. To be more competitive than gasoline in Brazil, E100 has to be below 70% of the price of gasoline.
Although domestic prices have slumped over the past week, not all of the decrease has been passed on at the pump, keeping it uncompetitive against gasoline.
S&P Global Platts assessed hydrous ex-mill Ribeirao Preto on average at Real 1,864/cu m last week, down 3% from previous week and down 10% from four weeks ago.
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