ANNOUNCEMENT 05 Oct 2018
The Government of Argentina increased the price of the bioethanol used in the minimum compulsory biodiesel percentage of oil blends in automobile fuels.
NUMBER OF INTERVENTIONS
InfoLeg. Ministerio de Hacienda. Secretaría de Gobierno de Energía. Resolución 21/2018. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/310000-314999/314976/norma.htm
InfoLeg. Ministerio de Energía. Resolución 97/2018. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/310000-314999/313479/norma.htm
On 5 October 2018, the Ministry of Treasury of Argentina adopted Resolution 21/2018 increasing the price of maize- and sugarcane-based ethanol used in blending automobile fuels. The new prices have increased from ARS 20.248 (USD 0.53 at the time of the measure) to ARS 21.999 (USD 0.58) per litre in the case of cane-based ethanol and from ARS 16.234 (USD 0.43) to ARS 18.318 (USD 0.48) 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 October 2018.