Ethanol sales fall due to high sugar prices and the invasion of imported cars
Assessment of ANP shows a drop of 8.5% ethanol sales Brazil last year
According to an evaluation of the National Petroleum, Natural Gas and Biofuels (ANP), a decrease of 8.5% in the sale of ethanol gas stations in the country last year was a result of high prices for biofuels in the domestic market, due to the international conjuncture, which led to an increased demand for sugar in foreign markets.
According to the ANP director Allan Kardec, the drought in India has reduced the supply of sugar on the world market and took the sugar and ethanol producers to set aside part of their harvest for sugar production, which had more attractive prices last year.
The data released by the ANP this week indicates that ethanol consumption in Brazil reached 15.07 billion liters last year, compared with 16.4 billion liters sold in 2009.
If the anhydrous ethanol (which is added to gasoline) and hydrated (which goes straight to the car bomb) are considered, the decrease in consumption of ethanol was 2.9%, first decrease registered since 2003. Last year 22.1 billion liters were consumed, compared with 22.8 billion in 2009.
Apart from crop failure in India, there was in the national market, a significant supply and variety of imported cars, powered solely by gasoline. Data released by ANP indicates that the sale of cars that run only on gasoline last year rose 31%, while the dual-fuel cars, only 6.9%.
The director believes, however, that in 2011 there will be a recovery of the ethanol market in the country.