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25 Argentine Biodiesel Plants Halt Output Over Regulated Price Gap

Industry groups cite 15 months of below‑cost floor prices set by the state.

Overview

  • All 25 plants that supply the domestic biodiesel blend have suspended operations, stopping deliveries to refiners that must meet blending mandates.
  • Producers say the official price of $1,408,687 per tonne sits below production costs of roughly $1,641,000–$1,689,000, forcing sales at a loss.
  • Sector chambers warn the stoppage puts about 4,000 jobs at risk and could trigger biodiesel shortages in September with knock‑on effects for diesel supply.
  • Companies accuse Energy and Mining coordinator Daniel González of favoring macroeconomic targets over the pricing formula established in law.
  • The industry urges replacement of Law 27.640, arguing the framework stifles growth, the 7.5% gasoil blend has not been met in recent months, and losses since mid‑2024 exceed US$80 million.