The Government arranged an adjustment of the 4% in biofuels which are mixed compulsorily with gasoline and diesel, as is the case with first generation biofuelsThe update will be effective from September and will be moved to the pumps in October, according to what was communicated by the Ministry of Energy.
The measure reaches equally to bioethanol (from sugarcane and corn) and biodiesel, and was made official through regulations published in the Official Gazette. In a context of restructuring of regulated prices, the change once again puts the focus on how the final amounts are formed that drivers pay.
What changes with the 4% increase in biofuels
With the new table, the liter of sugarcane bioethanol is at $857,006, while the corn derivative is located in $785,468. For him biodiesel, intended for mixing with diesel, the minimum purchase price is now $1.408.687 per ton, which implies a variation close to 3,99%. with respect to the previous value.
The updates were formalized through the resolutions 368 and 369 of the Ministry of Energy, and replace the amounts set in August. The change goes into effect for September operations and will remain so. until a new value is published.
Official prices and payment conditions
The reported amounts work as minimum purchase prices in the domestic market, as provided for in Law 27.640. Refineries and blenders must operate at least at these levels, published by the authority of application.
In addition, maximum collection periods were defined: up to 30 calendar days from the invoice for bioethanol and up to 7 days in the case of biodiesel. These conditions seek to give some operational predictability to the transactions of the month.
Effect on pumps and other price components
Transport is required to use biofuels: gasoline must incorporate a 12% bioethanol —divided equally between sugarcane and corn— and the diesel is mixed with a 7,5% biodiesel. As the cost of these inputs rises, the cost of producing fossil fuels increases and, with some delay, It is felt in the public price.
This transfer will coincide with other pressures. Taxes were partially reactivated at the end of August. ICL and IDC, which added around $10,52 per liter of gasoline and $8,58 per liter of diesel (increases of 0,8% and 0,7%, respectively). Energy also anticipated that from October 1 will apply the outstanding balance from 2024 and the first two quarters of 2025.
Complaints from the sector's chambers
The update did not settle the dispute with the companies. Casfer and Capba They sent a letter document urging to immediately publish the September value according to the current technical formula and apply it without exceptions in the following months.
According to these entities, the partial application of the methodology generated a operating loss of USD 45,5 million y lost income of more than USD 78,8 million from mid-2024. They also propose that, by replacing imported diesel, the price of biodiesel should be expressed in dollars and not in pesos with an average exchange rate that—they claim—penalizes profitability.
The president of Casfer, Marcelo Kusznier, attributed the change of criteria to the departure of Eduardo Chirillo of the Ministry of Energy and the arrival of Maria Tettamanti, along with the Cabinet Secretary Daniel GonzálezThe cameras gave a 48 hour period to correct the calculation and warned that if they did not do so, will initiate legal action.
Legal framework and regulatory context
The scheme is based on the Law 27.640 on Biofuels, which regulates production and mandatory mixing and empowers Energy to update prices when it detects mismatches with actual costs or risks of distortion in the liquid fuels market.
The portfolio also acted under the cover of the public emergency defined by Decree 70/23 and Law 27.742. Within this framework, the organization has been carrying out periodic reviews, the previous one in mid-August, and now adopts a 4% increase that will be integrated into September operations.
Combining new biofuel prices, reactivated tax burdens and pending updates predict an October with movements at the pumps; the outcome will depend on how the adjustment is passed on and whether the update formula is ordered that the industry demands.
