Brazilians Switch to Gas as Ethanol Prices Climb: A Dark Sign of Things to Come?

GreenTechMedia.com
Michael Kanellos October 21, 2009 at 12:40 PM

Liquid fuel is a commodity, it turns out.

Brazilian drivers in many states are switching from ethanol made from sugar cane to gas as higher sugar prices are pushing ethanol prices up, says Reuters.

When ethanol costs about 70 percent as much or more than gas, drivers switch. Ethanol only provides about two-thirds of the energy content that gas does; as a result, when it passes the 70 percent mark, it effectively becomes more expensive. In big cities like São Paolo and Rio, ethanol costs 60 percent to 67 percent of the price of gas, so drivers still pick it up. After taxes, it's still economical.

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