ANNOUNCEMENT 15 Aug 2018
The Argentine Government increased the price of the ethanol that is to be used in the minimum compulsory biodiesel percentage of oil blends for automobile fuels.
NUMBER OF INTERVENTIONS
InfoLeg. Ministerio de Energía. Resolución 97/2018. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/310000-314999/313479/norma.htm
InfoLeg. Ministerio de Energía. Subsecretaría de Recursos Hidrocarburíferos. Disposición 2/2018. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/310000-314999/311970/norma.htm
On 15 August 2018, the Ministry of Energy of Argentina adopted Resolution 97/2018 increasing the price of maize- and sugarcane-based ethanol used in blending automobile fuels. The new prices have increased from ARS 19.143 (USD 0.63 at the time of the measure) to ARS 20.248 (USD 0.67) per litre in the case of cane-based ethanol and from ARS 15.919 (USD 0.53) to ARS 16.234 (USD 0.54) per litre in the case of maize-based ethanol.
Due to a local content requirement imposed via Decree 543/2016 (please, see related state acts), this increase in the prices of bioethanol that are compulsorily included in automobile fuels produced in Argentina, suggests that this intervention is intended as a price support to domestic ethanol producers.
The new legislation has a retroactive character and the new prices apply to all purchases made from 1 August 2018.
On 5 October 2018, the Ministry of Treasury adopted Resolution 21/2018 modifying the price of maize- and sugarcane-based ethanol.