South American country concerned about poor supplies and high prices for country’s agriculture sector
BUENOS AIRES (Reuters) — Argentina’s government will raise required biodiesel content in diesel blends in a bid to address a prolonged shortage of the motor fuel, especially for the country’s key agricultural sector, the energy ministry announced recently.
The measure could squeeze local supplies of soybean oil, used to make biodiesel in the South American country, and put upward pressure on grain prices.
Argentina is a major grains producer and exporter. It is also an important player in the global biofuels market.
Biodiesel content for diesel used by small- and medium-sized companies will rise to 7.5 percent, or up by half, the ministry said in a statement.
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The ministry will also allow all companies to temporarily boost biodiesel content in diesel blends by an extra five percentage points to reach a maximum of 12.5 percent.
“Today’s global energy situation presents scenarios of scarcity along with high (diesel) prices,” the ministry said, adding that the country had enough installed biodiesel production capacity and that the increased blend could help reduce diesel imports, helping save foreign currency.
The ministry did not specify when the new biodiesel content rules will take effect.
