The prices of ethanol continue to decline in the São Paulo spot market. In the last week (from December 11th to 15th), the CEPEA/ESALQ indicator for hydrated ethanol closed at an average of R$ 1.8588/liter (net of ICMS and PIS/Cofins), a significant decrease of 6.14% compared to the previous week. For anhydrous ethanol, the decline was even more pronounced during the period, at 7.04%, with the indicator at R$ 2.1337/liter (net of PIS/Cofins).

According to researchers at CEPEA, the pressure comes mainly from high supply. In addition to the higher volume produced in this 2023/24 season, biofuel sales at the pumps are below expectations, even with an advantage over gasoline, and external devaluations of oil reinforce the downward trend in domestic ethanol prices. On the distributors' side, interest has remained low in recent days – these companies still work with stocks acquired in other periods, with new sporadic deals being carried out at lower values for more extended withdrawals.