ANNOUNCEMENT 04 Jul 2019
The Government of Argentina has increased the price of the bioethanol used in fuel blendings of automobiles.
NUMBER OF INTERVENTIONS
InfoLeg. Ministerio de Hacienda. Subsecretaría de Hidrocarburos y Combustibles. Disposición 119/2019. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/320000-324999/324870/norma.htm
InfoLeg. Ministerio de Hacienda. Subsecretaría de Hidrocarburos y Combustibles. Disposición 81/2019. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/320000-324999/323765/norma.htm
On 4 July 2019, the Finance Ministry of Argentina has adopted Disposition 119/2019 increasing the price of sugarcane-based and maize-based ethanol used in fuel blendings for automobiles. The new prices have increased from ARS 24.073 per litre (USD 0.58 at the time of the announcement) to ARS 24.916 per litre (USD 0.60 at the time of the announcement), and from ARS 21.801 per litre (USD 0.52 at the time of the announcement) to ARS 22.564 per litre (USD 0.54 at the time of the announcement) respectively.
Due to a local content requirement imposed via Decree 543/2016 (please, see related state acts), the changes in the prices of bioethanol that are compulsorily included in automobile fuels produced in Argentina, suggests that this type of interventions are intended as a price support to domestic ethanol producers.
The new legislation has a retroactive character and applies as of 1 July 2019.