After ten years, filling up with gasoline instead of ethanol has become more advantageous for Mato Grosso’s drivers.
Previously, the state was an exception, as during the decade ethanol was more profitable for drivers.
However, the increase in the scaled cost of ethanol at mills and distributors has caused prices at the pumps at service stations to rise. With that, the advantage changed and now, all over Brazil, gasoline has been bringing more benefits.
The competitiveness between the two products is calculated considering that the calorific power of the sugarcane or corn ethanol engine is 70% of the power in gasoline engines.
When the proportion reaches 70%, on average, the use of ethanol or gasoline in the tank is considered indifferent.
It so happens that currently the price ratio reaches a percentage above 72%. “In other words, it is more advantageous to fill up with gasoline and this has been happening for at least two weeks. Unusual news for Mato Grosso”, explains Nelson Soares, executive director of Sindipetróleo.
The executive director also explains that such impactful increases in fuels also affect sales volume and increase the cost of service stations.
“With the price of everything skyrocketing, the consumer’s income is harmed and he tends to control spending and running less becomes his option”, he analyzes.
Just divide the price of a liter of ethanol by that of gasoline. If the result is less than 0.7, the sugarcane or corn derivative is the best to supply. If it’s greater than 0.7, then gasoline is better.