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Hydrous ethanol sales break record in Minas Gerais in August

The month of August marked a turnaround in hydrous ethanol sales in Minas Gerais, with a surprising increase of 24.5% compared to July. According to data from the National Petroleum, Natural Gas and Biofuels Agency (ANP), distributors sold a total of 163,932 cubic meters of biofuel, driving a 17.06% increase in sales compared to August 2022.

The highlight of this growth is the advantageous price ratio of ethanol in relation to gasoline during the month of August. The significant increase in average gasoline prices, announced by Petrobras in August, made ethanol a more economical option for consumers, stimulating an increase in consumption.

Despite this significant increase in August, ethanol sales have not yet fully recovered year-to-date. From January to August, ethanol sales in Minas Gerais registered a drop of 21.7%, compared to the same period last year, totaling 1.037 million cubic meters traded.

Mário Campos, president of the Association of Sugar and Energy Industries of Minas Gerais (SIAMIG), commented on this trend of consumers returning to ethanol: "ANP data demonstrated an increase in the consumption of hydrated ethanol, not only in Minas Gerais, but throughout Brazil. However, we are still below the results of previous years. This already reflects, firstly, the attractiveness of the price of ethanol in relation to gasoline. In Minas Gerais, the price difference between hydrated ethanol and gasoline reaches at almost R$2, which has led many consumers to choose ethanol as the most economical option."

In addition to the price advantage, tax stability played a key role in increasing ethanol sales. Campos highlighted the tax changes that have occurred since November 2021 and the recomposition of these taxes throughout 2023, stating that "with tax stability, we observed a greater effect on the relationship between supply and demand in fuel prices, which made ethanol more competitive. We are in a harvest that is expected to be a record, not only in Minas Gerais, but throughout the Center-South region of the country. Furthermore, we have the supply of corn ethanol, which contributes to a substantial supply of ethanol in the market, and this biofuel needs to be sold."

Minas Gerais regains 2nd place in the national sugarcane production ranking

Minas Gerais is harvesting a record sugarcane harvest in the 2023/24 season. According to data from SIAMIG, the expectation is for a harvest that could reach 75 million tons, representing an increase of 10% compared to the 68.1 million tons processed in the previous harvest. At the end of the harvest, Minas Gerais has a great chance of regaining its position as the second largest sugarcane producer in Brazil. The largest volume ever processed in the state occurred during the 2020/21 season, when 70.8 million tons of sugarcane were crushed.


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