Sao Paulo — The pump price of hydrous ethanol in Southeastern Brazil averaged 57.21% of gasoline for September 2-8, compared with 54.65% the week before, latest data from the National Petroleum Agency showed.
The ratio is the highest since the week of August 5-11.
Hydrous fuel ethanol is used as E100 in flex-fuel vehicles and competes with gasoline at the pump, where it is competitive when its price is 70% or less than the gasoline price. Gasoline has 30% more energy content than its competitor, hydrous.
The increase of the ratio against gasoline is attributed to a recent increase in ex-mill prices, which led to higher prices at the pumps.
Hydrous prices at the pump averaged Real 2.594/liter, up 3.2% from a week ago, while gasoline prices were Real 4.66/liter, up 1.2% showed ANP data.
Brazilian spot hydrous ethanol prices have surged in early September to Real 2,080/cu m, the highest level since June 13 when the price was Real 2,040/cu m, buoyed by rising gasoline prices and strong demand.
Latest data from industry association, UNICA, showed hydrous domestic ethanol sales by CS mills were at a record high in August at 1.97 billion liters, up 41% from a year ago and almost 16% higher from the previous month.
S&P Global Platts assessed hydrous ethanol at Real 2,050/cu m ex-mill Ribeirao Preto Thursday, up almost 18% from a month ago.
