Brazilian August hydrous ethanol consumption soars 56% on year

In Brazil, the association of fuel distributors says hydrous ethanol blending soared 56% on the year in August and up 2.6% over July’s consumption. Hydrous ethanol is used in flex-fuel cars, so its higher demand is further reflected by the 13% drop in gasoline consumption compared to August 2014, while diesel consumption fell nearly 7% year-on-year. Falling ethanol prices due to a supply glut brought upon a nearly seven-year global sugar surplus that has mills focusing on ethanol production means hydrous prices especially are well below the 70% price level compared to gasoline that encourages use over fossil fuels.