Increase in mixing percentage Biodiesel This year Gasoline, The measure, taken by the national government last week amid a shortage, is to “ensure a major fuel supply,” according to a report by the Rosario Stock Exchange (BCR). The subject noted that in terms of prices, the product is “more competitive” with diesel imported from Argentina.

On the reduction of the mandatory biodiesel mixture in diesel from 10 to 5% after the introduction of the law last year, Due to shortages and production shortages, the government increased the mandatory share of biodiesel from 5 to 7.5%, which exclusively provides small and medium-sized businesses. On the other hand, in 60 days, he added five points that are supplied to a market where all players in the industry can compete, including those who export.

In 2021, according to the Rosario Stock Exchange, 486 million liters of biodiesel were used. By 2022, with new reductions and increased demand, the need for biodiesel will increase by 90%.

“From January to May, the price of diesel imports in dollars increased by more than 57%. Meanwhile, the purchase price of biodiesel for its mandatory mix has risen by 16% in dollars this year. This makes the latter more competitive compared to imported diesel, remember that markets are highly volatile and there are significant price volatility in a relatively short period of time. Mentioned in the report of the Rosario Stock Exchange. Claudio Molina, Guido D’Angelo and Julio Calzada took part in the work.

The subject added “In recent days, there has been a significant drop in the price of raw soybean oil, which has reduced the price in the proposed new 5% free segment, which is open to the free market. That is, the segment where industry exporters can compete.

“Biodiesel is one of the fuels that is and will be the main energy transition. The expansion of diesel volume on biodiesel is in line with our country’s commitments under the Paris Agreement and the Escazu Agreement, along with other agreements to reduce global warming. Noted the subject.

“With the increase in the content of biofuels in the mixtures sold on the local market with mineral fuels, the industry of undeniable international competitiveness will be revived. In 2016-2017, Argentina was consolidated as the world’s leading exporter of biodiesel. “Today, the main export direction of this Argentine biofuel is the demanding European market,” he added. Exports this year will be about 1.2 million tons. However, despite large domestic consumption cuts and more sales overseas, the biodiesel industry has an idle capacity of 50%.

Import

The report records a sharp rise in diesel imports this year, a product that is lacking and has provoked protests from carriers on the routes. “Under high domestic demand, diesel imports increased by almost 300% compared to the same period last year, from $ 500 million to $ 1.95 billion in the first five months of the year. exact.

He added that growth “This is explained not only by an increase in import prices, but also by a 126% increase in the amount of imported diesel, which increases from 0.89 mt to more than 2 mt.

To compare, biodiesel in the same period It increased by 27% in export volume and 71% in export value, with foreign trade exceeding $ 1.088 million in January-May this year.

He went on to say that “with the industry operating at half its productive capacity, it is clear that there is still much room for improvement in both domestic and foreign markets.” For BCR, the Secretary of Energy “can” continue cutting with biodiesel, which may increase activity.