Brazilian liquid fuel demand continues to grow at an accelerated pace, having increased by more than 5% in the last twelve months. Gasoline and diesel are the main drivers of this recent high.
EPE projects Brazilian demand in 2023 will increase by 2.7% for total diesel, 3.9% for gasoline 'C', 4.1% for hydrous ethanol, 10.5% for jet fuel, and 1.9% for LPG.
We estimate that the upward trajectory of Otto cycle fuels will be maintained in 2023 and 2024. The recovery of the sugarcane harvest and the increase in production from corn will contribute to the expansion of ethanol supply.
Despite the recent good performance of domestic flights, Brazilian jet fuel demand remains slightly below pre-pandemic levels. The international flight segment shows a slower recovery, being affected especially by the devalued exchange rate and the high prices of fares.
The August 2023 Brazilian Short-Term Fuel Market Outlook presents improvements for its readers, with the insertion of a specific analysis for biodiesel and the inclusion of new products in data spreadsheet (diesel 'B', diesel 'A', gasoline 'A' and anhydrous ethanol). In addition, this edition features a new layout, aiming at facilitating readers' navigation through the publication's content.
Click here and read the August 2023 edition.