The oil unions had warned about the lack of price updates, with the possibility of mobilization. Given this, the Government decided to move forward with a 2% increase, in line with the crawling peg.
The Government ordered this Tuesday new prices for biodiesel and bioethanol, based on corn and sugar cane, which must be compulsorily mixed with fuels for domestic consumption, according to two resolutions published in the Official Gazette.
One of the publications of the Secretary of Energy, dependent on the Ministry of Economy, raised to $1,004,562 the minimum acquisition price per ton of biodiesel, intended for combination with diesel, from the previous $984,865. This represents an increase of 2%.
In the same line with another 2% increaseanother official resolution reported that the value of bioethanol based on sugar cane was set at $670,564 per liter, the minimum acquisition price for its mandatory mixture with gasoline, from $657,416 pesos per liter, last month.
According to the resolutions, these increases respond to correct the “disparities resulting from its implementation and the real costs of manufacturing the products,” although increases are also justified in the case that said price could generate “distortions” in fossil fuel prices at the peak of the pump.
In this sense, the Government by setting an update base gives a brief indication of how much gasoline can increase at the beginning of the month, although it is clarified that it will be 2% plus a percentage due to the rise in the international value of oil.
Finally, it is clarified that the payment period for biodiesel may not exceed 7 calendar days from the date of the invoice and that this measure comes into effect as of October 29.
Oilers had asked to update the price of biodiesel to avoid a “paralysis” in the industry
The Argentine Federation of Oil, Gas and Biofuels Unions (FaSiPeGyBio) denounced this week the lack of updating of the biodiesel price and expressed concern about the impact that will have in industry and workers of the sector. They warn that currently the cost of production is above the value of the fuel.
The oil union, which also brings together employees from the oil industry biodiesel, had communicated that they were putting in a state of alert and ask the authorities “comply with what the law regulates based on Resolution 963/2023, through which said price must be set.”
According to FaSiPeGyBio, production costs “are above the price of biodiesel and, if it is not urgently updated, it will begin a paralysis throughout the industry”. This situation will undoubtedly “affect the supply of biofuel in several regions of the country, mainly in the province of Buenos Aires.”
If these changes in fuel values have not been made, The biodiesel workers had warned of the possibility of starting mobilizations.
Source: Ambito
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