The Argentine government lowered the price of biodiesel intended for mandatory blending with diesel by nearly 2% to mitigate the fuel price increase caused by the war in the Middle East. According to Resolution 81/2026, published this Wednesday in the Official Gazette, the acquisition price for biodiesel to be blended with diesel is set at $1,808,690 per ton for operations during April 2026. Previously, the price was $1,842,796, meaning the reduction is 1.85%. For the acquisition price of corn-based bioethanol, the value is $917,323. The prices of biofuels are part of the costs reflected at the pump, so any variation can imply a modification in the retail prices of gasoline and diesel. This time, the price of diesel will be less pressured in the short term, although it is unlikely to decrease amid the rise in energy prices due to the war in the Middle East. The government's decision aims to moderate the impact of the oil price increase, which has accumulated a 50% rise since the United States and Israel attacked Iran. The surge in international crude prices has directly translated to pump prices in recent weeks, generating complaints from various sectors about the cost increases they face. In this regard, bus companies in the Buenos Aires Metropolitan Area (AMBA) have announced a reduction in frequencies due to the increase in diesel costs and the lack of recognition of this expense. The regulation from the Secretariat of Energy determined that the payment period for biodiesel cannot exceed 7 consecutive days from the date of the corresponding invoice. At the same time, it clarified that the new fixed price 'is the value at which commercialization operations in the domestic market must be carried out' and explained that the price reduction is due to 'the current conditions of the biodiesel market meriting the determination of a new price'. In the considerations, it was recalled that the energy secretariat is authorized to 'determine the methodology for calculating the prices at which the acquisition of biofuels for their mandatory blending with fossil fuels must be carried out, which must guarantee a certain profitability, considering the costs of production, transport, and the price of the product at its production plant'. In the case of bioethanol, both sugarcane-based and corn-based, intended for its mandatory blending with gasoline, new values for the fourth month of the year have not yet been published, so the prices set in January are still in effect. In the first month of 2026, the minimum acquisition price per liter of sugarcane-based bioethanol was set at $1,000.868.
