The network of 25 biodiesel SMEs that supplies the mandatory diesel cut-off interrupted its activity for the domestic market and put on the table the risk of diesel shortages starting in SeptemberSpread across Buenos Aires, Santa Fe, La Pampa, San Luis, and Entre RÃos, these plants maintain that the regulatory environment is forcing them to sell below cost and that a shutdown is, for now, the only way to avoid further losses.
According to the chambers that represent them, the decision comes after 15 months late in the official values ​​and the regulatory and market changes affecting the sector. They claim that the prices published by the Energy Secretariat do not cover manufacturing costs and that, with this mismatch, they could only meet a tiny portion of the quota that are assigned to them by regulations.
Why production was stopped
According to the Chamber of Regional SME Companies that Produce Biofuels (CEPREB), the current price set by the Secretariat is 1.408.687 pesos per ton, while the effective cost of producing that same ton is around 1.641.000 pesosThe sector formula suggests a level around 1.690.000-1.691.000 pesos, including a minimum profit margin.
The gap is not new: in August a value of 1.354.507 pesos compared to a theoretical price close to 1.690.000 pesosWith such a gap, SMEs have already warned the Energy Ministry that most of them will not be able to meet the quota, which puts pressure on the diesel supply to the final consumer.
The context is aggravated because near the 90% of the inputs (soybean oil and methanol, among others) are dollarized. In parallel, private sector estimates calculate accumulated losses of more than 80 million from mid-2024, a difficult red to manage with the price regulated below costs.
Impact on supply and market
The regulatory framework is given by the Law 27.640, in force until 2030: sets mandatory acquisition quotas for refineries and establishes a cut-off of 7,5% biodiesel in diesel. In the case of bioethanol, the mixture with gasoline is 12% (6% corn and 6% sugarcane).
Despite this mandate, in recent months the effective cut has been lower than expected: in November it was around 4%, and in February and March it did not exceed 6%The shutdown of the plants threatens to deepen this diversion if there are no changes in regulated prices.
With production halted, companies anticipate they will only be able to deliver a minimum part of its quotaThe sector warns that if this persists, the supply of diesel for transport and productive activities could be affected, with a potential impact on logistics costs.
In the labor field, no layoffs have been reported at the moment, but the chambers admit that they could occur. suspensions or early vacations If the crisis drags on, they emphasize, the activity is key to the productive interior due to its contribution to employment and agro-industrial chains.
What the sector's chambers demand
The entities that bring together plants —CEPREB, CASFER and CAPBA— point to the Secretary of Energy and denounced the crisis in the biodiesel industryThey argue that prices are not updated according to the formula established in the regulations, but rather according to criteria linked to inflation control, which leaves them operating at a loss.
They also point out that the biodiesel was not responsible of pump price increases. They assert that the liberalization of liquid fuels allowed for increases that shifted the bulk of the adjustment to consumers, while biodiesel lagged behind and was pressured downwards.
In technical documents submitted to the Government, they estimate that a full update of biodiesel would add barely 19 pesos per liter of diesel, a value that, they say, could be absorbed by refiners after the increases they have already applied to traditional fuels.
The sector also denounces asymmetric treatment: soybean oil and diesel at the pump have free price and move with the exchange rate, while biodiesel remains anchored below cost. In his opinion, this violates the legal security and even affects property rights by forcing it to operate in bankruptcy for more than a year.
What can happen from now on?
With notifications already sent to the energy authority and no immediate sign of correction, the sector is asking for a urgent update to restore the formula. If this does not happen, the diesel shortage could begin to be noticed in the coming weeks, especially from September, and the mandatory cut would still be below the target.
In this scenario, the definition of the reference price and compliance with quotas will be decisive. SMEs remember their role as generators of foreign currency savings, employment in the interior and industrialization of rural areas, in addition to contributing to the energy transition with lower emissions compared to fossil fuels.
The picture left by these data is clear: the halt of the 25 biodiesel plants combines a conflict of regulated prices with immediate effects on diesel supply and activity. Between an official value of $1.408.687/t, a cost of $1.641.000/t and a technical reference around $1,69 million/tThe negative margin appears unsustainable; if there are no corrections, production, regional employment, and logistics could come under further pressure.
