It is a popular Brazilian rule of thumb that compares only the pump price of the two fuels: divide the ethanol price by the gasoline price, and if the result is below 0.70 (70%), ethanol tends to be the cheaper choice. The rule exists because ethanol holds roughly 30% less energy per liter than gasoline, so a flex-fuel car covers fewer kilometers on a liter of ethanol than on a liter of gasoline.