Argentina tries to backtrack on biodiesel policy by cutting export taxes and encouraging blending

In Argentina, the government is preparing to cut biodiesel export taxes to 3.31%, a record low, retroactive to Oct. 1. That’s a significant cut from September’s 8.6%. The government is sending producers signals to continue producing, so they export but also sell into the local market as it shaved off about 1% from the price refiners must pay to blend biodiesel. The country currently has a 10% biodiesel blending mandate. A lack of supportive market signals is expected to weigh on domestic production by as much as 30% this year.

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