Ethanol fall slows down for consumers and CNG shoots up

The price of hydrous ethanol continued its downward trajectory this week, but at a slower pace, according to the ANP (Agência Nacional do Petróleo, Gás Natural e Biocombustíveis).

If in the first week of February the reduction in fuel prices at the plants in São Paulo led to a drop at the pump of almost 3%, now this cut was 1.98%.

According to the agency, a liter of hydrated ethanol cost, on average, R$4,699 in the week between February 13 and 19, with a minimum price of R$3,850/liter and a maximum of R$7,699/liter. In the month, the accumulated fall is 6.15%.

Prices for the week of Feb 13 to Feb 19

Source: ANP

Regular gasoline cost, on average, R$ 6,583 at the pumps (the fourth consecutive weekly drop of 0.5%), driven by cheaper anhydrous ethanol. The fuel was sold for up to R$7,999 at pumps in Angra dos Reis (RJ). In one month, the drop in fuel reaches 1.13%.

The stations in the northern states had the most expensive gasoline, on average (R$ 6.663/liter); while those in the South had the lowest price (R$ 6.428/litre).

The maximum price of gasoline was R$ 7 in 21 states: Acre, Alagoas, Amazonas, Bahia, Ceará, Espírito Santo, Goiás, Maranhão, Mato Grosso do Sul, Mato Grosso, Minas Gerais, Pará, Paraná, Pernambuco, Piauí, Rio de Janeiro, Rio Grande do Sul, Rondônia, Santa Catarina, São Paulo and Tocantins.

The maximum charged per liter of fuel only did not exceed this level in six: Amapá, Distrito Federal, Paraíba, Rio Grande do Norte, Roraima and Sergipe.

In the state of São Paulo, the average price of regular gasoline was R$ 6,322/liter, and the liter of fuel was sold for a range between R$ 5,579 and R$ 7,599. The most expensive price was found in stations in Santa Cecília, central region of the capital, and the cheapest in Carapicuíba.

Brazilians paid, on average, R$5,575 for diesel, a decrease of 0.25%, with a minimum price of R$5,059 and a maximum value of R$6,850. In the month, the fuel accumulates fall of 0.2%.

The price of CNG (Vehicle Natural Gas) continues to rise across the country. This week, the price of the cubic meter reached R$ 4,695, on average — a rise of 3.37%. In one month, this increase is 4.64%.

The market, however, still expects the increase in prices practiced by Petrobras with the escalation of international oil prices, influenced, among other factors, by the tension between Russia and Ukraine.

From a domestic point of view, rising fuel prices are one of the main sources of consumer concern and should be at the heart of the October presidential campaign.

The rise in pump prices has affected inflation and eroded the popularity of President Jair Bolsonaro (PL). First in polls of voting intentions, former president Lula has repeated in interviews that he intends to change the PPI (International Price Parity) policy practiced by Petrobras since the PT left power.

Rapporteur of two projects on the subject of fuel in the Senate, Jean Paul Prates (PT-RN) tries to create a tax on oil exports as one of the sources of financing to subsidize part of the price in times of high.

Another initiative seeks to change the way in which the ICMS (Tax on the Circulation of Goods and Services) on fuel is collected by states.