You may have seen recent news about rising oil prices linked to tensions involving Iran. Naturally, this raises questions about energy costs — including bioethanol fuel.
At Ekofuel, we believe in being transparent about what’s happening in the market. In this article, we’ll explain what’s driving recent price movements, how they affect bioethanol, and what it means for customers.
A quick summary
• Oil prices have risen due to global uncertainty
• Energy and transport costs have increased as a result
• These increases are now feeding into ethanol production and supply
• The wider ethanol market is showing clear upward pressure
While bioethanol isn’t directly linked to crude oil, it is still affected by the same underlying cost drivers.
Why global events are affecting fuel costs
A significant portion of the world’s oil passes through key shipping routes in the Middle East. When those routes are disrupted or under threat, markets react quickly. This doesn’t just affect petrol and diesel — it has a wider impact on:
• Energy prices
• Transport and logistics
• Industrial production costs
These are all important inputs in the ethanol supply chain.
Bioethanol production relies on energy
Bioethanol is often described as a renewable fuel — which it is — but producing it still requires substantial energy. The process involves:
• Fermentation of crops such as wheat or corn
• Distillation, which is particularly energy-intensive
• Further processing to achieve the required purity
As energy costs rise, so does the cost of producing ethanol.
We’ve already seen the first impact: distribution
One of the earliest effects has been on distribution. As fuel prices rise:
• Haulage costs increase
• Shipping becomes more expensive
• Fuel surcharges are introduced or increased
These changes tend to happen quickly, and we’ve already seen this across the supply chain.
Now the second wave is coming through: production costs
More recently, ethanol manufacturers have begun increasing their prices.This typically happens with a delay, as producers:
• Work through existing contracts
• Adjust to sustained increases in energy costs
These increases are now feeding into the wholesale ethanol market.
What the wider ethanol market is showing
A useful indicator of market conditions is the European wholesale ethanol benchmark. While this isn’t the same as packaged fuel for fireplaces, it reflects the underlying market. Over the past year:
• Prices have risen significantly from mid-2025 levels
• The market softened toward the end of 2025
• Since early 2026, prices have moved sharply upward
• The most rapid increases have occurred in recent weeks
Since the start of March, wholesale ethanol prices have risen by over 20%, contributing to a year-to-date increase of over 40% in 2026. While this benchmark doesn’t directly reflect packaged fuel prices, it is a strong indicator of pressure building within the ethanol market.
Why retail prices don’t move in a straight line
It’s important to understand that the price you see as a customer isn’t just the cost of ethanol. There are several layers involved:
1) Raw material (ethanol)The base cost, which is now increasing.
2) Manufacturing and packaging Costs influenced by energy, materials, and labour.
3) Distribution Including haulage, fuel surcharges, and storage.
4) Sales platforms Marketplaces such as Amazon and other platforms typically charge a percentage-based fee. When costs rise, these fees increase in absolute terms too.
5) VAT is applied as a percentage, meaning any increase in underlying cost also increases the tax paid.
What this means for customers
The key point is this that price changes are driven by market-wide cost pressures, not by individual retailers. As costs rise across:
• Energy
• Transport
• Manufacturing
• Wholesale supply
They inevitably feed through the supply chain. However:
• These changes tend to filter through gradually
• Retail pricing reflects a combination of factors, not just one input
• Markets can stabilise as conditions change
Can prices fall again?
Yes — and this is an important part of the picture. If global conditions improve, for example:
• A de-escalation or end to conflict
• Stabilisation in oil and gas markets
• Lower transport and energy costs
Then ethanol production and distribution costs can ease. In turn, this can lead to:
• Lower wholesale ethanol prices
• Reduced pressure across the supply chain
• More stable or potentially lower retail pricing over times
Like most energy-linked markets, bioethanol doesn’t only move in one direction — it responds to broader conditions.
Our approach at Ekofuel
At Ekofuel, our focus remains on:
• Maintaining consistent supply
• Managing costs responsibly
• Being transparent about market changes
We closely monitor both the ethanol market and wider energy trends to ensure we continue offering reliable, high-quality fuel.
Final thoughts
Even fuels that are not directly linked to crude oil can still be affected through:
• Energy costs
• Transport
• Supply chain dynamics
Understanding these factors helps explain why prices move — and why those changes are sometimes unavoidable.