Brazilian hydrous ethanol parity remains at high of 76.9%

March 29, 2016 |

In Brazil, although hydrous ethanol prices have fallen 5% in the past week, price parity against gasoline still remains at the highest since April 2011 at76.9%. Typically drivers switch to gasoline from hydrous when the parity is above 70% due to ethanol’s lower energy content by economic woes and soaring inflation have drivers looking to short-term spending rather than long-term value when fueling at the pump. Demand has begun to fall back due to high ethanol prices but as those prices fall thanks to the start of the crush, demand is sure to pick back up with little regard for the parity level.

Category: Fuels

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