Brazil's gasoline demand decreases, diesel rises on year in 2024: ANP

Gasoline C demand lowered while diesel B demand increased in the Brazilian retail market in 2024, with overall fuel sales reaching 134.8 million cu m, up 3.88% year over year, according to data from the National Agency of Oil, Gas and Biofuels, or ANP.

In a battle against hydrous ethanol, gasoline C (27.5% ethanol blend) lost market share, closing the year at around 44 million cu m sold at the pump -- an overall 4.12% decrease in demand on the year, according to ANP data. Whether that drop continues through 2025 will highly depend on the ethanol industry's ability to keep up with production to maintain competitive prices, market sources said.

The Center-West region saw the most year-over-year decrease at 10.23%, followed by an 8.85% decrease in the Southeast and a 1.56% decrease in the South. At the same time, demand increased by 3.12% in the Northeast and 1.63% in the North.

Gasoline's market share loss in the second half of 2024 slowed down compared to the first six months of the year, according to ANP. December closed with a total of approximately 4 million cu m sold at the pump, a 3.76% decrease compared to December of 2023. On a month-to-month basis, there was a 9.79% increase compared with November 2024 as seasonal demand started to heat up.

Continuing an uptrend from the past four years, diesel B (with 14% biodiesel) retail sales closed at around 67.2 million cu m in 2024, a 2.57% increase on the year, S&P Global Commodity Insights analysts' Latin America Short-term Outlook report(opens in a new tab).

Sales increased the most in the Northeast, closing 4.85% higher on the year, according to ANP. The region was followed by increases of 3.02% in the South, 2.05% in the Southeast, 1.74% in the North and 1.47% in the Center-West.

Compared to December of 2023, sales at the pump in December 2024 decreased by 7.02%, closing at around 5 million cu m. There was also a month-on-month decrease of 9.80% compared to November 2024, as expected low demand persisted between harvest seasons.