ANNOUNCEMENT 14 Oct 2020
The government of Argentina increased the price of biodiesel purchased by oil companies from local producers.
NUMBER OF INTERVENTIONS
InfoLeg. Ministerio de Economía. Secretaría de Energía. Resolución 5/2020. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/340000-344999/343110/norma.htm
InfoLeg. Ministerio de Hacienda. Subsecretaría de Hidrocarburos y Combustibles. Disposición 323/2019. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/330000-334999/332288/norma.htm
On 14 October 2020, the Secretarñia of Energy of Argentina adopted Resolution 5/2020 increasing the price of biodiesel that oil companies have to pay to local producers.
The new price was increased from ARS 44,121 per tonne to ARS 48,533 per tonne (USD 569.99 to USD 626.98 at the time of the new regulation). The previously applicable prices were established via Disposition 323/2019 (please, see related state acts).
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 (see related state acts).
Resolution 5/2020 entered into force on 15 October 2020.