BRAZIL: Ethanol gains market share over gasoline in Q3
Published: 11/14/2017, 3:16:20 PM
Gasoline sales lost steam in the Brazilian domestic market and ethanol sales increased, data from the National Petroleum Agency (ANP) shows, according to Brazil's Folha de S. Paulo news website.
This is ANP's first report on sales since the Brazilian federal government increased PIS/Cofins taxation on gasoline and Petrobras changed its policy to adjust gasoline prices more frequently, according to international prices.
Ethanol sales decreased 20% in volumes in the first half of the year, and is expected to close 2017 at a negative balance of 16%.
The sector will close the year with better results than of that in 2016, according to Antonio de Padua Rodrigues, technical director at sugarcane industry association UNICA.
Brazil is buying more ethanol than exporting this year, but it has reduced the trade deficit during the last three months.
"We had an avalanche of imported ethanol in the Northeast, until the sector mobilized (forces) and the Chamber of Foreign Trade implemented an import rate," said Padua Rodrigues.
Brazilian ethanol is more expensive than U.S. corn ethanol, considering logistic costs, according to Paula Arantes, consultant at Ilos.
The daily adjustment in fuel prices has helped to increase stock at distributors, and sales to final consumers are lower than fuel deliveries to the supply networks, said Arantes.