Argentina updates bioethanol and biodiesel prices and reduces the blend

  • New minimum prices: sugarcane bioethanol $918,025/l, corn bioethanol $841,394/l, biodiesel $1.688.961/ton.
  • Temporary reduction of the percentage of biodiesel blend in gasoil and diesel oil to 7%.
  • Payment terms: bioethanol up to 30 days; biodiesel, 7 calendar days.
  • Producers complain about costs and the debate on a new Biofuels Law advances.

Biofuels: bioethanol and biodiesel

The Argentine government formalized a package of measures that redefines the minimum values ​​for bioethanol and biodiesel effective immediately for blends with fossil fuels. Through resolutions 443/2025 and 445/2025, the Ministry of Energy introduces new prices and a temporary adjustment to the blending percentage applied to diesel and gas oil, with the aim of providing certainty to the chain in a context of rising costs.

The initiative comes amid a surge in soy oilBiodiesel, a key input for biodiesel, is intended to mitigate the impact on prices at the pump while supply is monitored. The obligation to blend biodiesel with diesel fuel is temporarily established in the 7% on the final product, while waiting for the market to allow a new parameter to be defined.

New values ​​and payment terms

The minimum purchase prices are as follows: sugarcane bioethanol is set to $918,025 per liter’s most emblematic landmarks, the corn bioethanol en $841,394 per liter and the biodiesel for mandatory cut in $1.688.961 per tonThese references apply to ongoing operations and will remain in effect until a new official update.

Regarding payments, the regulations set limits to regulate marketing: bioethanol It must be paid within a maximum period of 30 consecutive days from the invoice, while the biodiesel will have a limit of 7 daysWith this, the Energy Ministry seeks to reduce financial tensions in the supply chain and ensure supply.

Biofuels: bioethanol and biodiesel

Mandatory blends and temporary changes

The proportion of biodiesel The price of diesel fuel and diesel oil sold in the country is temporarily set at 7%measured on the volume of the final product. According to the authority, the measure aims to contain the impact of the plant input in the cost of production and, therefore, in the price at the pump.

The temporary nature of the change will allow for the evaluation of mechanisms to balance the value chain of biodiesel without affecting supply. Official monitoring aims to preserve the availability of biofuels already sustain some price stability to the public.

Monthly increases and regulatory context

The monthly update scheme applied a 3% increase for bioethanol (both sugarcane and corn) and a 6% to biodieselYear-to-date figures show increases of 30% bioethanol and the 58% in biodiesel, in line with the volatility of raw materials and energy.

These changes are in addition to the recent adjustments and remain in effect. until further notice Energy. The ministry also reminds companies that they must respect the established payment deadlines, with the aim of order flows between suppliers and refiners.

Industry reactions and legislative debate

Bioenergy chambers indicate that the authorized increases They do not keep pace with the rise in costsThey cited the rising cost of corn, oil, and energy, warning that the profitability gap is widening. puts at risk to medium and small plants and the food safety in the interior of the country.

Meanwhile, the debate on a new Biofuels Law, driven by producing provinces, with orders from greater predictability, automatic price update and recognition of environmental benefits.

Effect on pumps and price composition

The new lows will tend to have some impact on prices of gasoline and diesel, since biofuels are one of the components of the final fuel structure that the motorist pays for.

The price at the pump depends on four main factors: exchange rate parity (the wholesale rate rose 39,6% since December), the price of Brent (with a drop of 12,5%), the tax burden (taxes on Liquid Fuels and CO2(with partial updates) and the periodic variation of biofuels, especially visible this year in biodiesel.

In addition, since the middle of the year, the oil companies They are not obligated to communicate their price adjustments to the public in advance, and some apply variations by time slot according to demand, which adds dynamism to the retail market.

Given this scenario, the combination of new minimum prices and the temporary reduction of the cut to 7% It seeks to cushion the pressure on logistics costs and fuel suppliers, while the sector awaits definitions on regulations. long term and eventual regulatory changes.

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