ANNOUNCEMENT 01 Nov 2019
The Government of Argentina has increased the price of biodiesel purchased by oil companies from local producers.
NUMBER OF INTERVENTIONS
InfoLeg. Ministerio de Hacienda. Subsecretaría de Hidrocarburos y Combustibles. Disposición 289/2019. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/330000-334999/331155/norma.htm
InfoLeg. Ministerio de Hacienda. Subsecretaría de Hidrocarburos y Combustibles. Disposición 199/2019. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/325000-329999/328322/norma.htm
On 1 November 2019, the Finance Ministry of Argentina has adopted Disposition 289/2019 increasing the price of biodiesel that oil companies have to pay to local producers.
The new price has been increased from ARS 33,618 per tonne (USD 563.32 at the time of the new legislation) to ARS 38,486 per tonne (USD 644.89 at the time of the new legislation).
Due to the compulsory requirement to use at least 10% of biodiesel in fuel blends locally produced imposed via Resolution 390/2014, this increase in the prices of biodiesel suggests that this intervention is intended as price support to domestic biodiesel producers.
The new legislation has a retroactive character and the prices apply as of 1 November 2019.