Brazilian ethanol competitive with gasoline, will stimulate demand

In Brazil, ethanol demands are expected to rise as the current price of ethanol is more attractive at the pump than gasoline, according to Copersucar SA.

Ethanol prices are 62 to 63% of gasoline, making filling up with ethanol more advantageous than with gasoline.

“If the current parity is maintained, we start to stimulate demand,” said Luis Roberto Pogetti. “When the harvest started, the price of ethanol fell fast at the producer level, but it didn’t fall as fast at the pump. It took some time for this to reach consumers.”

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