10 August 2012 22:42 [Source: ICIS news]
BUENOS AIRES (ICIS)--The Argentina government on Friday ordered a tariff increase of 60% on biodiesel exports, government officials said.
The government raised tariffs for biodiesel exports tariffs to 32% from 20%.
The measure was announced by Argentina minister of economics Hernan Lorenzino, and public Axel Kicillof.
“This measure was a lot more convenient than raising export tariffs for soybean exports or set export quotas”, said Lorenzino.
The Argentine government also eliminated a 2.5% refund that biodiesel producers received on export tariffs.
Argentina is one of the world’s top biodiesel exporters. Germany is the largest importer of Argentine biodiesel.
Argentine biodiesel production for 2012 is projected at a record 3bn litres (793m gallons), according to the US Department of Agriculture Foreign Agriculture Service.
Biodiesel exports should reach about 2.5bn litres by 2020, according to a Food and Agriculture Organisation (FAO) and Organisation for Economic Co-operation and Development (OECD) report.
Also on Friday, the government established the official price of domestic biodiesel at Argentina pesos (Ps) 4,405/tonne ($956/tonne, €774/tonne). According to news accounts, this is a 15% reduction.
The government mandates that domestic fuel contains at least 7% biodiesel.
Additional reporting by Leela Landress
($1 = Ps460) ($1 = €0.81)
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