Ethanol leads fuel price decline in May.

The price of hydrous ethanol registered the largest drop among monitored fuels in May 2026, in a price adjustment movement after the sharp increases observed in March and April. According to a survey by Veloe's Fuel Price Monitor, prepared with technical support from the Foundation Institute of Economic Research (Fipe), the biofuel fell 5,6% in the month, to a national average of R$ 4,488 per liter, mainly reflecting the progress of the 2026/27 sugarcane harvest in the Center-South region, which increased the supply of the product at the pumps. 

The downward trend was widespread among the fuels monitored, interrupting the upward trajectory observed in the previous month. Besides ethanol, the largest declines occurred in regular diesel and S-10 diesel, both down 3,3% compared to April. Regular and premium gasoline also fell 1,0% during the period, while CNG was the only fuel to register an increase, albeit a moderate one, of 0,3%. 

Top 5: Biggest drops in hydrous ethanol by state in May

1. Federal District: -10,0% — average price of R$ 4,528 per liter
2. São Paulo: -7,2% — R$ 4,200 per liter
3. Minas Gerais: -6,0% — R$ 4,522 per liter
4. Paraná: -5,1% — R$ 4,534 per liter
5. Mato Grosso: -4,9% — R$ 4,418 per liter

The average national prices in May were R$ 7,218 per liter for S-10 diesel, R$ 7,135 for regular diesel, R$ 6,889 for premium gasoline, R$ 6,752 for regular gasoline, R$ 4,574 for CNG, and R$ 4,488 for hydrated ethanol. 

Despite the relief observed this month, fossil fuels continue to accumulate significant increases for the year and over the past 12 months, in an environment still marked by the volatility of oil in the international market, the uncertainties surrounding the conflict in the Middle East, and the domestic dynamics of price increases at the pumps. 

In the first five months of 2026, S-10 diesel led the price increase among fuels, with a rise of 16,8%, followed by regular diesel (+16,6%), regular gasoline (+7,5%), premium gasoline (+7,2%), and hydrous ethanol (+0,3%). CNG was the only fuel with a decrease during the period (-1,6%). 

In a 12-month comparison, the behavior remains similar: S-10 diesel (+16,1%), regular diesel (+15,7%), regular gasoline (+6,1%), premium gasoline (+5,9%), and hydrous ethanol (+2,6%). CNG shows a cumulative decrease of 4,9%.

The survey indicates that the most intense decline in ethanol prices is associated with the stronger entry of the sugarcane harvest in the Center-South, the country's main producing region. The increased supply favored a reduction in prices at the pumps and increased the competitiveness of the biofuel compared to gasoline in some regional markets. 

“May brought an important movement of price adjustment, especially in ethanol, driven by the progress of the harvest and the expansion of supply. Even so, diesel and gasoline remain at high levels year-to-date, showing that the effects of international pressures on energy continue to be present in the Brazilian market,” says André Turquetto, CEO of Veloe. 

From a weekly perspective, the data indicates that ethanol reached a new low for the year in the week of May 23rd, hitting R$ 4,40 per liter, after a series of declines that began in the second half of April. Meanwhile, S-10 diesel and regular gasoline also experienced a gradual stabilization throughout May, although they remain at significantly higher levels than those recorded at the beginning of the year. 

Purchasing power hits lowest percentage. 

Brazilians' purchasing power improved in the first quarter of 2026, even in a scenario still marked by high fuel prices. According to a survey by the Fuel Price Monitor, filling a 55-liter tank with regular gasoline compromised, on average, 5,5% of household income in the country and 3,7% on average in capital cities — the lowest percentages for the period since the beginning of the historical series in 2017. 

The result indicates a relative increase in income compared to the prices charged at the pumps, although significant regional differences persist, especially in the North and Northeast regions, where the weight of fuel supply on the family budget remains higher.