Brazilian hydrous ethanol prices rise to record high

In Brazil, Platts reports hydrous ethanol prices rose to a record high of $490.23 per cubic liter this week, an increase of 4% on the week, on the back of higher ICMS taxes in Sao Paulo state and Petrobras’ decision to raise gasoline prices. Gasoline prices increased nearly 8% on Jan. 19 while the ICMS tax, which impacts anhydrous rather than hydrous ethanol, rose to 13.3% from 12% on Jan. 15. Spot availability for both anhydrous and hydrous ethanol has been tight recently due to the interharvest season.