ANNOUNCEMENT 14 Oct 2020

The government of Argentina has increased the price of the bioethanol used in fuel blendings of automobiles.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

InfoLeg. Ministerio de Economía. Secretaría de Energía. Resolución 4/2020. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/340000-344999/343109/norma.htm

InfoLeg. Ministerio de Hacienda. Subsecretaría de Hidrocarburos y Combustibles. Disposición 322/2019. Available at: http://servicios.infoleg.gob.ar/infolegInternet/anexos/330000-334999/332287/norma.htm

Inception date: 15 Oct 2020 | Removal date: open ended

Price stabilisation

On 14 October 2020, the Secretary of Energy of Argentina adopted Resolution 4/2020 increasing the price of sugarcane-based and maize-based ethanol used in fuel blendings for automobiles.

The new prices have increased from ARS 29.808 per litre to ARS 32,789 per litre (USD 0.39 to USD 0.42 per litre at the time of the announcement). The previously applicable price was established via Disposition 322/2019 (please, see related state acts).

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 price support to domestic ethanol producers.

Resolution 4/2020 entered into force on 15 October 2020.

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AFFECTED PRODUCTS