Brazilian hydrous ethanol prices will have to fall further after Petrobras cuts gas prices again

May 29, 2017 |

In Brazil, ethanol prices may be forced to fall even further in line with Petrobras’ cuts to gasoline prices. On Thursday the oil major announced a 5.4% price cut effective immediately, meaning a 2.4% price drop at the pump. The latest figures from the energy agency ANP show that hydrous ethanol prices had fallen below the 70% ethanol price parity with gasoline but drivers don’t calculate prices themselves, they just choose hydrous when there is more than 1 real price difference at the pump. So in order to achieve that difference and boost demand, mills may have to cut prices.

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