RIO DE JANEIRO, BRAZIL – The Congress of Argentina, one of the world’s largest grain exporters, on Friday approved a law allowing a reduction in the amount of biofuels to be blended into domestic diesel and gasoline.
The country, a leading exporter of biodiesel made from soybean oil, has developed a thriving biofuels industry thanks to its grain production and state support for biofuels to be used in combination with automotive fuel.
The regulation, aimed at ensuring the sustainable use of biofuels in diesel and gasoline, has been approved by the Argentine Senate. It had already passed the House of Congress.
The measure foresees a minimum use of biodiesel of 5%, which could fall to 3%, in diesel for sale to the public, from the previous 10%.
The new law, promoted by the ruling Peronist party, seeks to promote biofuels to have a “medium and long term horizon to continue its expansion”, said Energy Secretary, Dario Martinez, in a statement sent to journalists.
The measure should encourage soybean producers to focus more on food usage than fuel.