Argentina raises biodiesel, ethanol prices for refiners in June

04.06.2018

Argentina's Energy Ministry authorized Friday hikes in biodiesel and ethanol prices for oil refiners to blend into products, effective immediately.

It increased the price of biodiesel 7% to Peso 19.498/mt ($781/mt) in June from Peso 18.223/mt in May, according to a decree in the Official Bulletin, the newspaper of record.

For ethanol, it lifted the price to Peso 18/liter for supplies of sugarcane-derived ethanol to meet a 12% blend requirement in gasoline, up 1.5% from Peso 17.737/l in May. The price of corn-based ethanol was increased 7.6% to Peso 15.162/l from Peso 14.098/l over the same period, it added.

The ministry did not give reasons for the pricing changes, which it makes monthly to reflect fluctuations in the cost of producing the fuel additive. Refiners buy all of their biodiesel and ethanol supplies from local producers.

The biggest oil refiner is state-run YPF, trailed by Shell-backed Raizen, BP-backed Axion Energy, Oil Combustibles and Trafigura.

Argentina produced 579,074 mt of biodiesel in the first quarter of this year, up 10.5% from 524,184 mt in the year-earlier period. Over the same period, consumption fell 4.7% to 260,287 mt from 273,175 mt, according to the latest data from the Energy Ministry.

Ethanol production fell 6.1% to 232,102 mt in the first quarter from 247,237 mt a year earlier, while consumption rose 3.8% to 273,223 mt from 263,274, the data showed.


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