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Argentina's government backs biofuel law favoring competition
🇦🇷 Argentina /Energy & Infrastructure

Argentina's government backs biofuel law favoring competition

From La Nación · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Argentina's government backs a biofuel law proposal that favors increased competition and gradual market opening.
  • The proposal, supported by the executive branch, suggests increasing ethanol blend in gasoline but cautions against doubling biodiesel blend due to potential cost increases.
  • Private sector stakeholders, including oilseed producers and refiners, expressed differing views on market protection and the pace of regulatory changes.

Argentina's government has thrown its support behind a proposed biofuel law, aligning with an initiative by Senator Patricia Bullrich that aims to modernize the sector through increased competition and a phased opening of the market. Daniel González, the Secretary of Energy and Mining Coordination, stated that the bill "interprets the will of the Executive" and advocates for a system that gradually eliminates quotas and moderately increases mandatory biofuel blends.

We see no logic in doubling the biodiesel blend, as some projects propose, because it implies an increase in real terms, structural and permanent, of the diesel consumed throughout the country.

— Daniel GonzálezSecretary of Energy and Mining Coordination, explaining the government's stance on biodiesel blend increases.

The government's proposal supports raising the ethanol blend in gasoline from 12% to 15%. However, it expresses concern over proposals to double the biodiesel blend to 15%, warning that this could permanently increase the cost of diesel fuel, impacting transportation, agriculture, and consumers. "We see no logic in doubling the biodiesel blend, as some projects propose, because it implies an increase in real terms, structural and permanent, of the diesel consumed throughout the country," González stated.

While the government deems a 12% to 15% ethanol blend "reasonable," private sector representatives voiced differing opinions. Alfonso Romero, representing the Chamber of the Oilseed Industry (Ciara), criticized proposals that impose restrictions, arguing they hinder competition. "I heard the word competition a lot today... and on the other hand, all the series of restrictions that accompany some projects that precisely prevent this competition from happening," he said.

I heard the word competition a lot today... and on the other hand, all the series of restrictions that accompany some projects that precisely prevent this competition from happening.

— Alfonso RomeroRepresentative of the Chamber of the Oilseed Industry (Ciara), criticizing proposals that limit competition.

Romero suggested Argentina could learn from countries like Indonesia, which has increased its biofuel blend to nearly 40% to absorb more local production. He also questioned regulatory schemes that differentiate between company types, advocating for competitive markets and growing quotas instead.

I think it is something that Argentina can do by increasing the blend and increasing our consumption.

— Alfonso RomeroRepresentative of Ciara, suggesting Argentina can increase biofuel blends, citing Indonesia as an example.
DistantNews Editorial

Originally published by La Nación in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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