Hydrous ethanol competitiveness falls further against gasoline following tax cuts

In Brazil, Reuters reports that hydrous ethanol’s competitiveness against gasoline was already falling in May but with the cuts in various taxes that came into force this week and last, hydrous ethanol has become even less competitive. Ethanol prices are expected to fall in response to gasoline’s enhanced competitiveness. In the Southeast region, for example, the ethanol price ratio against gasoline fell to 64.48% last week when ethanol is typically viewed as a better deal when it is above 70%.