Brazilian drivers seen sticking with hydrous ethanol despite lower gas prices

In Brazil, Platts reports that despite the collapse of oil prices that has suddenly made hydrous ethanol no longer competitive despite enjoying record high prices less than a month ago, drivers are still expected to continue filling up with ethanol over gasoline because technically it is still cheaper. Due to ethanol’s lower energy content than gasoline, when ethanol is less than 70% of the price of gas it is considered to be cheaper. As of last Saturday, it was 70.16% of the price of gas, up from 70.04% the week prior.