The biodiesel industry in Argentina is at a critical crossroads, marked by economic and regulatory problems. that have shaken the structure of the sector. Recent government decisions and difficulties in exporting, added to the lack of updating of national reference prices, have set off alarm bells among manufacturers and business associations.
Associated companies and chambers have raised their voices to demand urgent solutions. that ensure the sustainability of the activity, which is essential not only for the agroindustry, but also for job creation and the development of various productive regions.
The conflict over biodiesel pricing
The main business entities in the sector (Casfer, Cepreb and Capba) They have repeatedly addressed formal letters to the national Government, demanding the Correct application of the established formula for setting the price of biodiesel intended for mandatory mixing with diesel. According to the allegations, since the current administration came into power, the Energy Secretariat has set acquisition prices per ton below what the official method establishes, which has forced many plants to operate with negative margins.
The difference between the published price and the calculation based on current regulations has generated an accumulation of operating losses that, according to data from the chambers, already exceed 45 million dollars. If the minimum profitability provided for by regulation but not received by companies is included, The economic damage to the sector amounts to 76 million dollars in the last year.
The associations maintain that this situation It puts the continuity of many factories at risk, especially SMEs. from the interior of the country, and threatens the stability of thousands of jobs linked to the biodiesel chain. Suspensions and cutbacks have already been reported at some plants, and fears of mass layoffs are growing if there is no response from the State.
Ignoring the official pricing mechanism not only affects the private sector, but can trigger a social and productive crisis in regions where biodiesel represents an important source of economic activity..
The impact of the reduction in withholdings and the increase in the price of soybean oil
To the losses derived from regulated prices, a new complication was recently added. President Javier Milei announced the Reduction of the export duty rate on soybean oil (a key tax for the oil sector) from 31% to 24,5%. Although the measure was intended to incentivize agricultural exports, In practice, it has increased the price of the main biodiesel input in the domestic market., drastically raising production costs.
Business chambers claim that this "double blow" - on the one hand, artificially low sales prices, and on the other, increasingly high raw material costs― makes the financial sustainability of organizations unviable. The result has been widespread concern not only among employers, but also among workers in the sector..
The reports sent to the Government reflect monthly price developments and how, in most cases, the official reference price has lagged behind the fair price calculated using the technical formula. Only in one month was there a slightly positive balance, which underlines the urgency of a comprehensive review of the current scheme.
Productive and social consequences: the sector's demand
For producers, the lack of updating of the regulated price, added to the increase in the price of soybean oil, seriously endangers the continuity of many plants, especially small and medium-sized enterprises that supply the domestic market. Large exporters, for their part, find themselves with idle capacity due to the closure of key markets such as the United States (blocked since 2018 by tariffs) and the collapse in demand in Europe.
The sector emphasizes that the current scheme is not only detrimental to companies, but It also undermines industrial development, the generation of added value, and employment. Argentina, which once had one of the most competitive biodiesel industries in the world, now sees a substantial portion of its productive potential slowed.
Businessmen argue that There is no logical or economic justification for maintaining a price that does not cover real costs. of the activity, shifting the lost profitability to other segments of the chain (such as large oil companies). They argue that, if the official formula were followed, the impact on the consumer price of diesel would be minimal compared to the positive effect on the entire local biodiesel industry.
This economic imbalance has led to job losses, plants operating at half capacity, and a growing perception of legal uncertainty. in the sector. The chambers demand that the State regain its role as an objective and transparent regulator, applying the rules agreed upon in current regulations.
The demand for an immediate solution and the expectation of change
Faced with this adverse context, Business associations have formally requested the immediate publication of an updated price in accordance with the method established by the regulations, which takes into account the reality of costs and guarantees the minimum profitability of the industry.
The sector warns that if the current mechanism is not modified, the The risk of factory closures, suspensions and layoffs will become a reality in the coming months.The negative impact would affect not only businesses but also many communities that depend directly and indirectly on biodiesel production.
The organizations expect a swift response from national authorities to prevent the crisis from worsening and jeopardizing a strategic sector for energy diversification and regional employment.
The biodiesel industry is calling for an urgent review of the pricing structure and the design of policies that guarantee predictability for investment and production. Resolving this conflict is not only crucial to avoiding factory shutdowns, but also to ensure the future of a renewable energy that is key to the Argentine agro-industrial model.