Author: Rodrigo Kwiatkowski da Silva

Source: Jornal de Londrina - Londrina / PR - ECONOMY - 31/03/2010

Rodrigo Kwiatkowski da Silva, special for Gazeta do Povo - Collaborated Fernando Jasper

After the strong increase registered at the beginning of the year, alcohol fell again in price and became again the best option for drivers of bi-fuel cars. After exceeding R $ 2,00 in February, ethanol has already retreated an average of 25% - and can be found for less than R $ 1,20 in some municipalities in Paraná. According to an informal survey by Gazeta do Povo, the average price in six of the largest cities in the state dropped 25% since February, from R $ 1,93 to R $ 1,45.

The average price is close to R $ 1,30 in Curitiba and Foz do Iguaçu and, in Londrina, it is R $ 1,19. In these three cities, prices have fallen by more than 30% since February. In Maringá, Ponta Grossa and Cascavel, the decline was weaker, between 15% and 20%, and average prices fluctuate between R $ 1,59 and R $ 1,68.

For the Association of Bioenergy Producers of Paraná (Alcopar), the reasons for the fall are the spawning of the distributors' stock, which made this decision due to the imminent harvest of sugarcane. “With the new crop, the pressure on the price eased. The stocked product started to be sold and there was the opposite movement. Now the offer presses prices down ”, explains Alcopar superintendent, Adriano da Silva Dias.

The up-and-down ends up confusing drivers, who complain about the variation. “If you are familiar with the cities where you are going, you can do the calculation. If not, those who travel blindly are lost. You have to do the math constantly, ”says university professor and broadcaster Jorge Nunes, who supplied fuel in Ponta Grossa yesterday. Driver Vera Almeida, in turn, decided to leave the accounts to her husband. “I only filled half a tank with alcohol and I will leave it to him to see if it is worth completing later or adding gas. I don't know if it's worth it or not ”, he says. It is estimated that, when the value of alcohol is below 70% of the price of gasoline, the derivative of sugarcane is more advantageous.

According to the vice president of the retail sector union, Sindicombustíveis, in Cascavel, Roberto Pelizzeti, the product is already 40 cents cheaper at the pumps. “It reached R $ 2,10 and today it is R $ 1,68. We are expecting the mills, but it looks like it will stay in this price range ”, believes Pelizzeti. In 40 days, the price in the city had gone from R $ 1,78 to R $ 2,10. Last month, in an attempt to contain ethanol prices, the government reduced the proportion from 25% to 20% of alcohol in gasoline. “There was virtually no recent variation in gasoline. There is a pressure to return to 25% in the mixture immediately, but the winners are the mill owners. We hope that the government will take the consumer side this time, since the return of the previous percentage is scheduled for May 1, ”says Pelizzeti.

Without market

In some cities, the sale of ethanol had practically zeroed at the pumps, during the price increase. “The price is falling and will fall further. It is already paying off to supply alcohol and the drivers are already returning ”, points out the president of Sindicombustíveis in Ponta Grossa, Djanusi Fontini Reis.

When alcohol prices are low, fuel accounts for 80% of sales at gas stations. In the recent boom in ethanol prices, however, gasoline accounted for 90% of the volume sold. “We have already seen an increase of 50% to 60% in the sale of alcohol. With the drop, we should reach between 70% and 80%, returning to the previous level ”, believes Reis. Before the increases, fuel cost around R $ 1,50 at its lowest value in Ponta Grossa, but hit around R $ 2,10 in February. Yesterday, the average price in the city was R $ 1,59.

Alcopar believes that there will be a stabilization in prices at the plants starting in the next few days. "Supply and demand must balance," predicts Silva Dias, the association's superintendent. He also points out that many service stations have not yet reduced prices so much because they bought the fuel with the old value. According to Alcopar, the Brazilian industry will produce something close to 27,6 billion liters of ethanol in the 2010/2011 harvest, whose harvest started a few days ago - about 3 billion liters more than in the previous harvest.

If the drop in price is a good sign for consumers, a very sharp drop is a sign of irregularities for the sector's union. In Londrina, leader Durval Garcia Júnior points out that the low value of the product at the pump is the result of tax evasion. The value of ethanol in Londrina reaches R $ 1,19. “Everyone is following whoever works in the fiscal illicit”, he says. “Whoever works with tax evasion, works with a lower price. It is an unreal market, because those who work correctly have to accompany those who do not pay taxes, otherwise they do not sell ”, he says.