Monday, January 17

Staggered increases are authorized for biodiesel from January to March

The four increases, 3.5% in December, 2.91% in January, 3% in February and 2.49% in March, total an increase of 12.45% compared to the November value.

It was also determined that the payment term of the biofuels In no case may it exceed 30 calendar days, counting from the date of the corresponding invoice.

At the beginning of August of this year the Government put into effect the new Biofuels Regulatory Framework, which will govern until 2030 from Law 27,640 enacted at the beginning of July, which established new parameters of mandatory cuts of gasoline and diesel, and created the Special Commission for the development of the sector.

The new framework for the elaboration, storage, commercialization and mixing of biofuels replaces the one that prevailed for 15 years, and which allowed a broad development of the sector in different provinces linked to the production of biodiesel and bioethanol from different raw materials.

The regime for the promotion of the production and use of biofuels will be in effect until December 31, 2030, and enables the national Executive Power to extend it, one time, for a further five years.

The continuity of the promotion regime sought to adjust the model that allowed in 15 years to have 54 production plants in 10 provinces, adding value at source, generating and sustaining regional economies with more than 300,000 direct and indirect jobs.

In accordance with the law, the procedure was determined for the application of a mandatory minimum cut of 12% of bioethanol and a possible reduction to 9% with naphtha, while for diesel it will be 5%, with an eventual reduction to 3%.

In the case of fuel made from sugar cane, the volumes must be 6% of the minimum mandatory mix, the same percentage for corn-based bioethanol.