Trade and markets
 

Detail

Area
Argentina
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/05/2013
Policy Category
Renewable energy
Policy Instrument
Renewable energy policy
Description
Raised mandatory blending with soyoil-based biodiesel to 10.
Notes
ARGENTINA – biodiesel consumption: Formerly fixed at 7 percent, between April and June, mandatory blending of diesel fuel with soyoil-based biodiesel will be raised by one percent each month until it reaches 10 percent. Mandatory blending was introduced in 2010 with the objective to reduce national outlays on fossil fuel imports as well as to support domestic soyoil consumption thus reducing the country’s dependence on soyoil exports. Reportedly, while the shift to a higher blending rate was already planned, the shift to the higher has been accelerated by a recent fire that damaged an important refinery, leading to a temporary surge in crude oil imports. The higher blending rate should lift domestic biodiesel consumption to around 1.4 million tons per year. Increased local demand is said to help the country’s biodiesel industry, which in recent months has been increasingly suffering from overcapacity and falling export demand (see also MPPU Sep’12).