March 10, 2014
Gov't raises biodiesel blend rate to absorb EU sanctions shock
Following the EU decision to ban Argentine biodiesel exports, Planning and Economy Ministers Julio De Vido and Axel Kicillof announced today the increase of mandated biodiesel blending that will account for “450,000 tons that will flow into domestic consumption.”
The decision, De Vido said, represents a “new step” the government is taking to improve Argentina’s biofuel industry. “33 percent of the production will be destined to supply domestic consumption of diesel,” the official explained as he confirmed the move will contemplate “no hikes” in fuel prices.
In a press conference, De Vido added the Cristina Fernández de Kirchner administration hopes the initiative will “encourage oil and biodiesel industry to create new export markets.”