Platts clarifies weekly calculations of Brazilian hydrous ethanol-gasoline price parity

Platts, part of S&P Global Energy, would like to clarify its publication of weekly calculations of price parity between hydrous ethanol and gasoline in Brazil's retail fuel market.

The calculations are published on a regional basis across Brazil on Mondays and are based on retail fuel price surveys collected from service stations and published by the country's oil regulator ANP (National Petroleum Agency), in line with standard industry practice.

Price parity between ethanol and gasoline is calculated by comparing the retail price of hydrous ethanol with the retail price of gasoline. To determine parity, Platts divides the price of ethanol by the price of gasoline and converts the result into a percentage. Hydrous ethanol is generally considered price-competitive when it is priced at 70%-75% of the gasoline price, reflecting its lower energy content relative to gasoline. If the ratio is 70% or lower, ethanol is typically the more cost-effective option for consumers; if it rises above 70%, gasoline may offer better value on a per-kilometer basis.

This clarification applies to the following symbols:

These calculations currently appear in the Platts Weekly Ethanol report and in the Platts price database under the codes listed above.

Please submit any feedback, comments, or questions regarding this clarification to platts_biofuels @spglobal.com and pricegroup@spglobal.com.

For written submissions, please clearly indicate if your comments are not intended for publication. Platts will review all feedback received and may make comments not marked as confidential available upon request.