ancap analyzes raising the mix of bioethanol in the composition of the gasoline. Although the measure promotes compliance with environmental goals, it could imply an increase in pumps in Uruguay, which is currently the country with the most expensive fuels in the region.
Bioethanol is a type of alcohol that is produced in the country from the fermentation of the sugars of some vegetable raw materials, mainly the sugar cane. And currently, gasoline can carry in a maximum of 10% of its composition that mixture, although Ancap keeps it in 9.8%
Today, the main production of bioethanol in the country is found in the two plants of the Ancap subsidiary, Alcohols of Uruguay (ALUR) in its two agro-industrial complexes in paysandu and beautiful unionwhere from the use of sugar cane and BT sorghum it is possible to produce 100 million liters per year.
“We are analyzing raising the mix up to 12%”confirmed this Tuesday the president of the state company, Alejandro Stipanicicwho expressed that the decision would go in the direction of “helping the construction of environmental and economic objectives associated with environmental goals, but also to capture the value of the increased production of Bella Unión, without losing the production of Paysandú, which is the more efficient”.
The decision could impact fuel prices
The project, studied jointly by the ministries of Industry, Energy and Mining, Environment and Economy, could have an impact on gasoline prices. This is basically because agrofuels, such as bioethanol, are more expensive than fossil fuels.
Meanwhile, although the government has decided to maintain the freezing of gasoline prices also in April -with the liter at 71.89 pesos–, by increasing the percentage allowed for the mix of environmental benefits the price could be impacted upwards.
This, in a context in which Uruguay remains the country with the highest prices in the region in this item, with $1.83 per literfollowed by Chili ($1.60 per liter) and Paraguayan (1.26 dollars per liter), according to the consultancy SEG Engineering.
But also, as Stipanicic stated, the decision –if it materializes– would be framed in the motivation to capture the value of the increase in ALUR production, which opens up a whole discussion regarding whether what some economists consider to be a priority should be prioritized. “inefficient entrepreneurship” before the pocket of consumers and to which side the weight of the goals and environmental commitments assumed tilts the balance.
Source: Ambito
