The national average price of hydrated ethanol in Brazil reached R$ 4.26 per litre during the second week of June 2024 [1].
This price drop is significant for Brazilian consumers because ethanol serves as a primary alternative to gasoline in the country's flexible-fuel vehicle market. Lower prices typically shift consumer demand toward biofuels, reducing the overall cost of transportation.
Veloe, a fuel price monitor, said the data was reported with technical support from the Fundação Instituto de Pesquisas Econômicas, known as Fipe [1]. The price of R$ 4.26 per litre represents the lowest level recorded since July 2025 [1].
Industry analysts said the decline is due to the advance of the sugar-cane harvest. This seasonal increase in production has led to a higher supply of ethanol in the domestic market, driving costs down for the end user [2, 3].
Data regarding the price decline varies across reporting sources. While some reports cite the R$ 4.26 figure for June [1], other reports indicate an average price of R$ 4.48 per litre during the second week of May 2024 [2, 3]. This discrepancy suggests a continuing downward trend in fuel costs throughout the early part of the year.
The shift in pricing follows a pattern where domestic supply levels directly influence the competitiveness of ethanol against petroleum-based fuels. As the harvest progresses, the availability of raw sugarcane ensures a steady flow of biofuel into the distribution network.
“The national average price of hydrated ethanol in Brazil reached R$ 4.26 per litre”
The decline in ethanol prices reflects the cyclical nature of Brazil's agricultural economy, where the sugarcane harvest timing directly impacts energy costs. Because many Brazilian vehicles can run on both gasoline and ethanol, these price drops incentivize the use of renewable fuels, potentially lowering national carbon emissions, and reducing the economic pressure on commuters.
