Argentina Increases Bioethanol Blend in Gasoline

The Argentine government has announced a strategic decision to increase the bioethanol blend in gasoline from 12% to 15%. This measure aims to diversify the energy matrix, reduce dependence on imported oil, and create new jobs. The province of Córdoba, which produces 45% of the nation's bioethanol, is positioned as a key player in this policy.


Argentina Increases Bioethanol Blend in Gasoline

Buenos Aires, March 27 (NA) – The recent announcement by the National Government to enable a voluntary increase in the bioethanol blend in gasoline constitutes a strategically relevant decision in energy, productive, and environmental terms. The measure allows for the incorporation of up to three additional percentage points of bioethanol into the gasoline market, increasing from the current 12% to 15%, under an open commercial scheme where refineries can opt for their supply. Likewise, it reaffirms the role of the Secretariat of Energy as the implementing authority with powers to adjust the blend levels according to the needs of the energy system. From a public policy perspective, this decision represents a step in the right direction: advancing towards a more diversified energy matrix, with greater participation of energy produced in the country and less exposure to the international volatility of hydrocarbons. In the current context, characterized by geopolitical tensions and high uncertainty in oil prices, particularly following the conflict in the Middle East, the strengthening of biofuels acquires a strategic dimension. Increasing the use of bioethanol allows for a reduction in dependence on imported fossil fuels, contributing to cost stabilization and mitigating the impact of external shocks on the economy. From a technical standpoint, bioethanol plays a central role as a natural octane booster, improving the quality of gasoline and optimizing engine performance. In turn, the increase in the blend generates concrete environmental benefits: a higher participation of bioethanol in the fuel mix allows for a reduction in greenhouse gas emissions from the transportation sector, with positive impacts on air quality and climate commitments. In this scenario, the province of Córdoba positions itself as a key player within the national bioethanol scheme. In 2025, provincial production reached 582,698 m³, representing approximately 45% of the national total, estimated at 1,294,884 m³, according to data from the National Secretariat of Energy to which the Argentine News Agency had access. Córdoba's production is based entirely on corn-based bioethanol, a crop widely available in the province with high levels of efficiency and competitiveness. In terms of demand, the increase in the blend implies an increase of nearly 25% in the volume of bioethanol required for the domestic market. For the province of Córdoba, in particular, it represents a concrete opportunity to consolidate its productive leadership, enhance its agribusiness chain, and actively contribute to a more balanced and federal development model. Its installed production capacity amounts to approximately 638,000 m³ per year, which allows it not only to supply its share of the increase but also to decisively contribute to the supply of the expanded market. These data consolidate the province as a strategic pillar of the sector, with effective capacity to support public policies aimed at increasing the use of biofuels and strengthening national energy security. Likewise, the expansion of bioethanol generates positive impacts on the real economy: greater demand for corn, increased industrial activity, job creation, and strengthening of regional economies. In summary, the expansion of the bioethanol blend constitutes a measure that combines economic rationality, energy security, and environmental sustainability. This translates into an additional estimated need of the order of 300,000 m³ per year, a volume that can be largely covered by corn-based production. In this regard, Córdoba has a significant structural advantage.