Start Even with the rise in gasoline prices, this fuel continues to be more advantageous in relation to alcohol. Check if in your state it is more advantageous to supply with ethanol or gasoline

Even with the rise in gasoline prices, this fuel continues to be more advantageous in relation to alcohol. Check if in your state it is more advantageous to supply with ethanol or gasoline

April 21, 2022 12:02 pm to 12:02 pm
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Photo: Reproduction Google Images/ Hyper Garage Blog




Fueling up with ethanol has advantages over gasoline only when the price at the pumps represents 70% of the price of that fuel. In the last month, it was found that it was only advantageous to supply with alcohol in 4 states

As a result of the rise in gasoline prices, the supply of alcohol increased. However, it is still more advantageous to fill up with gasoline in most states. According to the ANP, filling the car's tank with ethanol last month only paid off in São Paulo, Minas Gerais, Mato Grosso and Goiás.

The advantage of alcohol is calculated considering that alcohol has about 70% of the calorific value of gasoline. Thus, to find out whether ethanol is more advantageous than gasoline, simply multiply the value of a liter of gasoline by 0.7. If the value is lower than that of a liter of ethanol, it means that filling up with gasoline will be more advantageous. Otherwise, ethanol will be the best option.

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At the end of last month, the average price of gasoline was more competitive than that of ethanol in 22 states and the Federal District, with only São Paulo, Minas Gerais, Mato Grosso and Goiás left out.

according to G1, in São Paulo, the state that produces and consumes the most fuel, the liter of ethanol represented a parity of 68.34% compared to the average price of gasoline. In Rio de Janeiro, the average value of ethanol corresponded to 76.88% of the price of gasoline.

The price of a liter of alcohol represented 68.7% of the value of gasoline in the average of the more than 4 thousand stations surveyed by the ANP throughout Brazil. This means that ethanol has a small advantage. It is worth remembering that this relationship varies between stations and cities.

Increase in ethanol sales

According to the Sugarcane Industry Association (Unica), ethanol sales increased by 17,33% in the first half of March compared to the second half of February. It is estimated that the price of ethanol may decline in the coming months as a result of the new sugarcane harvest, which started this month.

According to the Broad National Consumer Price Index 15 (IPCA-15), which shows a preview of the country's official inflation, gasoline accumulates an increase of 27.68% in 1 year, while ethanol records an increase of 24.27%.

In the last month, the price of fuels had an increase in the gas stations in Brazil after a hard readjustment, which was announced by the Petrobras in March.

It is worth noting that the value of gasoline for the consumer also depends on the exchange rate and the Petroleum, since since 2016 Petrobras has adopted the so-called international parity, passing on the highs of oil in the international market to the amount charged at its refineries.

The price of ethanol also has an impact on the value of gasoline, since it is mandatory that this fuel has 27% of anhydrous ethanol in the blend of gasoline sold at gas stations.

How to calculate whether it is more advantageous to fill up with alcohol or gasoline

To identify which fuel is more worthwhile at the pump, the driver must multiply the value of a liter of gasoline by 0.7. If the result is less than a liter of alcohol, it is better to fill up with diesel. Otherwise, ethanol is the best option.

Soon:

  • Multiply the value of a liter of gasoline by 0.7;
  • If the result is less than the price of a liter of ethanol: gasoline is more advantageous;
  • If the result is greater than the price of a liter of ethanol: alcohol is the best option.


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