The first three months of the 2020/21 season closed with significant drops in the average prices of anhydrous and hydrated ethanol in the state of São Paulo. According to information from Cepea, this scenario was verified despite the reaction recorded in June. The average value from April to June this year (monthly CEPEA / ESALQ Indicators were considered) for hydrous ethanol decreased by 18.4% compared to the same period in 2019, in reais (all values deflated by the IGP-M of June / 20).

In the case of anhydrous ethanol, the devaluation was even more significant in the same comparison, of 19.7%. The pressure in the evaluated quarter came from the very sharp drop in domestic demand for fuels, reflecting the isolation measures imposed by municipal and state governments, in the face of the covid-19 pandemic.