Lower hydrous ethanol prices don’t translate to more Brazilians at the pump

In Brazil, hydrous ethanol prices have slipped slightly but that hasn’t translated into higher sales at the pump because oil prices have also fallen. Last week, ethanol was 66.2% of the price of gasoline, while the previous week it was nearly 66%. As ethanol becomes more competitive against gasoline when it is lower than 70% the price of gas, prices should be driving demand.