08 November 2013 20:31 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--The Argentine government is considering raising the mandated biofuel blend rates in a move to reduce dependence on fuel imports, sources in the biofuels sector said on Friday.
"Some factions in the government see that we have abundant volumes of ethanol and biodiesel that could be blended at higher rates and help reduce the amount of fuel we import," a biodiesel producer said.
Argentina lacks the necessary capacity to produce sufficient gasoline and diesel and as a result must rely on pricey imports to fill the shortfall.
By 1 January 2014, the government hopes to have the majority of fuel sold domestically to be blended with a 10% ethanol cut, an ethanol producer said. Today, the percentage is 7%.
Additionally, a 10% biodiesel blend rate is being considered for the diesel fuel pool, the ethanol seller said.
Currently, biodiesel is officially blended at a mandated 8%.
Argentine biodiesel producers have been looking for solutions to high import tariffs expected to start in November for all biodiesel imported into the European Union (EU), the country's principal export market.
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