Brazilian liquid fuel demand will keep growing in 2024. EPE forecasts an increment of 2.6%, or 4 billion liters, for 2024, and 1.8%, or 2.9 billion liters, for 2025, after three consecutive years growing more than 4% per year, which represents an average annual increase of 6.4 billion liters.
Economic growth, positive industry results, a record number of employed people, income transfer policies and government programs, with emphasis on the New Growth Acceleration Program (Novo PAC), should contribute to growth along both 2024 and 2025.
Otto cycle fuels consumption is still at elevated levels, with the share of ethanol (anhydrous and hydrous) at 45% since the beginning of the year. Hydrous ethanol demand is growing due to a greater availability in the market (production + stocks), which leads to a more favorable price when compared to regular gasoline.
In the aviation sector, Brazil's jet fuel demand increased by 4.0% compared to the same month in 2019 and by 6.0% compared to June 2023.
LPG consumption continues to grow, partly encouraged by lower prices compared to the previous year.
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