Understand why the price of ethanol increased at the pumps

Director of AbriLivre explains the influence of the increase in gasoline and diesel and teaches ‘magic formula’ to choose the best fuel when filling up

Fernando Frazão/Arquivo Agência BrasilDirector also talked about which points consumers should consider when choosing a place to supply

The consecutive increases in the prices of gasoline and diesel, caused by the readjustments of the Petrobras, it also raises the values ​​of ethanol. Although the fuel is not related to oil and is not influenced by its fluctuations, there is a direct relationship between the increases, explains the economist and executive director of the Association of Gas Stations, Rodrigo Zingales. In an interview with Jornal da Manhã, Young Pan News, this Sunday, 16th, he pointed out the main reasons that cause the increase in pumps, such as the monopoly of the market and the lack of regulation of direct sales from refineries to gas stations. “When you raise the price of Gasoline and diesel the price of ethanol ends up pushing up, because ethanol and gasoline are now practically perfect substitutes. Despite the ANP having resolved the direct sale, the Executive vetoed the article that allowed it. So what happens is that the distributors end up taking a toll, which determines the price of gasoline and ethanol”, he clarified.

For the situation to be reversed, Zingales understands that government measures are needed. He understands that responsibility for ethanol pricing is shared between the federal government, governors and distributors. “Despite the rate of ICMS not having been changed in most states, when the price of gasoline increased, it ended up raising the value of the tax in absolute terms. When the fuel was in the range of R$ 3, the ICMS value was around R$ 0.80. When ethanol increased to R$ 5.20, this absolute value ended up doubling and the State began to collect more, even though the rate did not change. So the state is responsible [no preço], because it could reduce the tax rate at the pump”, he explained.

“Regarding the federal government, interventions in Petrobras’ price policy could have lowered the value of diesel and gasoline, and ethanol would also decrease because there is a substitution between ethanol and gasoline. And distributors have been controlling these prices precisely because direct sales are still incipient,” added Rodrigo Zingales, who does not see the privatization of the state-owned company as the only solution. “We have to make structural changes throughout the chain. If you privatize, you will simply transfer the state monopoly to regional and private companies”, he added.

Which posts to trust?

The director of the Association of Gas Stations also spoke about which points consumers should consider when choosing a place to fill up. “Consumers have to trust the owner of the gas station. It is the owner of the gas station, not the flag that guarantees the quality of the fuel. When you enter a gas station, ask where the fuel comes from. Ask to take the test, to see, it is possible. If the attendant tells you to go to another pump, be suspicious”, pointed out Zingales, who explained the “magic formula” to decide between fuels. “If the price of ethanol is 70% or less cheaper than gasoline, ethanol is worse. If gasoline costs R$6 and ethanol R$4.80, we are saying that the price of ethanol is only 20% cheaper, so give preference to gasoline”, he concluded.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

Check Also

Amazon to close bookstores and other physical stores | Technology

Amazon said on Wednesday it plans to close all 68 brick-and-mortar bookstores, kiosks and toy …