Brazil Ethanol Consumption To Fall In 2011
Ethanol consumption in Brazil should fall in the 2011/12 season as high sugar prices buoy prices of the fuel, making it less competitive than gasoline at filling stations, Datagro analysts said on Monday.
Demand for the cane-based fuel has soared since 2003 when automakers launched their first flex-fuel cars which can run on any mixture of gasoline and hydrous ethanol, according to Datagro. They now account for nearly all sales of new cars.
Since cars run further on each liter of gasoline, ethanol
loses its cost advantage once its price rises to more than 70 percent of the fossil fuel.