The hottest oil price drop has put pressure on the

2022-08-11
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The decline in oil prices has put pressure on the Brazilian ethanol industry

the decline in oil prices has put pressure on the Brazilian ethanol industry

January 15, 2015

[a good software system can not only operate easily and quickly, but also China paint information] Fitch International estimates that the decline in international oil prices will put more pressure on the already difficult ethanol industry in Brazil. Cheaper oil prices have weakened the possibility of price adjustment by Petrobras, which will damage the competitiveness and demand of alternative energy sources such as ethanol

the retail price of gasoline in Brazilian gas stations will not increase in the short term, because its price will always be lower than the international oil price. The latest increase in oil prices was in early November last year, when gasoline and diesel prices were raised by 3% and 5% respectively. Fitch said that Petrobras' inevitable trend is to reduce the ex factory price of fuel, so as to avoid losing the competition with other companies. The opportunity for sales representatives of many experimental machine sales companies to move to management positions is rarely "competitive", but in the short term or due to transportation difficulties and the depreciation of the real (Brazilian currency), they will not immediately reduce the price

Fitch pointed out that the price of ethanol will still maintain a little competitive advantage over gasoline this year, and the sugar price on the New York Stock Exchange is also a little attractive. The only reason for Brazil's gasoline price hike may be that in order to increase the federal government's fiscal revenue, the "intervention tax in the economic field" (that is, the cide tax exempted since 2012) is re levied. On the positive side, the absolute ethanol content in Brazilian gasoline increased from 25% to 27.5%. Minas state imposed circulating service on aqueous ethanol, but imagine that the tax was reduced from 19% to 15%, which is good news for ethanol manufacturers

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