Ethanol became more cost-advantageous than gasoline for Brazilian fuel consumers during April 2026 [1].

This shift occurs as international oil prices surge due to the war in Iran, while a new sugarcane harvest increases the supply of cheaper biofuel. For drivers in a country where many vehicles can use both fuels, this price swing directly impacts monthly household spending and national carbon emissions.

The price of ethanol fell 12% within the industry in April 2026 [4]. This decline coincided with the start of the 2026/27 sugarcane harvest, which lowered production costs and increased availability [1, 2].

In contrast, gasoline prices have trended upward. In the week prior to March 17, 2026, gasoline prices increased by 2.54% [3]. The volatility in gasoline is largely attributed to the instability of international petroleum markets [2].

The geographic advantage of ethanol varies across the country. By mid-March, ethanol was more advantageous in only two states: Mato Grosso and Mato Grosso do Sul [3, 5]. However, reports from April indicate the cost advantage expanded to several other states as the harvest progressed and oil prices continued to climb [1, 2].

Industry data shows a widening gap between the two fuel types. While gasoline remains tied to global crude fluctuations, ethanol's price is more closely linked to the domestic agricultural cycle [1]. The timing of the 2026/27 harvest has provided a critical buffer for consumers facing the inflationary pressure of the Iran conflict [2].

“Ethanol price fell 12% within the industry in April 2026”

The convergence of a domestic agricultural peak and a global geopolitical crisis highlights Brazil's strategic reliance on biofuels. By shifting consumption toward ethanol during oil price spikes, the country can mitigate some of the economic shocks caused by foreign conflicts, though the benefit remains unevenly distributed across different states.