Amid tensions in the biofuels market, the Energy Secretariat has approved a 5.4% adjustment to the reference price for biodiesel purchases, a move aimed at ensuring the viability of small and medium-sized enterprises (SMEs) in the sector in the face of rising operating costs. This measure, which follows a previous 5% increase in the same month, brings the cumulative increase to 10.7% and reflects the urgent need to balance the supply chain in a context of industrial shutdowns.
With biodiesel as a key component in the mandatory blend with diesel , this decision by the Executive Branch aims to prevent shortages and support the transition to more sustainable energy, aligned with the country's energy diversification goals.
The official resolution, published in the Official Gazette on October 27, sets the new price at $1,590,832 per ton, up from the previous price of $1,508,704. This regulated price covers not only production costs but also transportation and delivery to the plant, responding to market dynamics that have eroded margins in recent months.
The regulation emphasizes the need to guarantee profitability for operators in a system where biodiesel, derived primarily from soybean oil, represents 7.5% of the diesel fuel sold in the domestic market. The Energy Secretariat, under the direction of María Tettamanti, is responsible for this authorization, acting in compliance with current regulations for biofuels.
Productive and sectoral impact
The direct beneficiaries are the 25 small and medium-sized enterprises (SMEs) located in provinces such as Santa Fe, Buenos Aires, Entre Ríos, San Luis, and La Pampa, which have faced a severe crisis with plants shut down since the end of last month. Represented by organizations such as the CEPREB, CASFER, and CAPBA chambers of commerce, these companies have been lobbying for tariff updates, arguing that a price lag of up to 15 months threatened to collapse local production. Economically, the adjustment mitigates the risk of disruptions in the supply of fuel blends, preserving price stability for the end consumer and preventing diesel price increases that would impact transportation and industry.
For the agribusiness sector, which supplies the raw material, this injection of profitability could reactivate planting and processing cycles, injecting liquidity into regional economies dependent on soybeans. However, analysts warn that without structural reforms, these palliative increases may not be enough to counteract exchange rate volatility and global input costs. The current regulatory framework, governed by Law 27,640, which extends until 2030, imposes mandatory purchase quotas on refineries, ensuring a minimum demand level for producers.
In parallel, the government is promoting a revised bill for the biofuels regime, which includes raising the biodiesel blend to 10% and the bioethanol blend to 15% starting in 2027, along with a phased deregulation over a six-year period. This proposal also incorporates incentives for the co-processing of non-fossil waste, limited to 3% until 2031, to encourage innovation in the sustainable value chain.
Inflationary pressures
The market reaction has been one of cautious relief, with industry associations welcoming the move as a halt to the imminent paralysis, although they are calling for more agile mechanisms for future reviews. The state intervention, which responds to supply shortage alerts, underscores the vulnerability of the biofuels ecosystem to inflationary and logistical pressures. In a year of macroeconomic adjustments, this measure illustrates the delicate balance between industrial protection and energy cost containment , with potential impacts on the agricultural trade balance.
Looking ahead, the sector anticipates that this price increase will catalyze the resumption of operations at the affected plants, paving the way for greater integration of renewables into the energy mix. With COP30 on the horizon, Argentina could position itself as a regional leader in biofuels if it accelerates the transition to more ambitious blends, attracting green investment and diversifying exports. However, success will depend on a consensus that harmonizes production interests with the global sustainability agenda, transforming short-term challenges into long-term opportunities for a more resilient economy.