Argentina enables more ethanol in gasoline as farm sector disputes fuel future

The government has enabled higher ethanol blends in gasoline, sparking a debate in the agricultural sector over increased production, investments, and reduced import dependence. In San Francisco, Córdoba, a station for the state fleet was opened to boost biofuel use.

The government measure allows expanding ethanol mixtures in gasoline, promoting biofuels. This has prompted the agricultural sector, with figures like Gustavo Idígoras and Luis Zubizarreta, to challenge the future direction of fuels in Argentina.

In San Francisco, Córdoba, a service station exclusive to the state fleet was enabled to strengthen biofuel consumption. The initiative aims to cut import dependence and encourage local production investments.

The announcement, as reported by TN, underscores bioeconomy importance in provinces like Córdoba and Santa Fe amid fuel sector tensions.

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Brazilian government officials, including President Lula, discuss diesel subsidy tweaks in a conference room amid charts of fuel price surges.
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Government discusses diesel subsidy adjustments after low initial adherence

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Brazil's ANP released on Thursday (2) a list of five companies that joined the first phase of the diesel subsidy program, excluding major distributors Vibra, Ipiranga, and Raízen. President Luiz Inácio Lula da Silva's government is discussing technical adjustments to attract them, as they handle half of private imports. The program aims to cushion the war in Iran's effects on fuel prices.

President Luiz Inácio Lula da Silva confirmed on Thursday (30/4) that the ethanol blend in gasoline will rise from 30% to 32%. He also announced the biodiesel blend in diesel increasing from 15% to 16%. The official announcement is scheduled for next week.

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Energy and Mineral Resources Minister Bahlil Lahadalia plans to expedite the mandatory blending of bioethanol into fuel as a response to global oil prices reaching US$118 per barrel. The policy aims to reduce import dependency and secure national energy supplies amid Middle East geopolitical tensions.

President Lula's government presented a bill to Congress on April 23, 2026, allowing PIS/Cofins cuts on gasoline, ethanol, diesel, and biodiesel using extraordinary oil revenues. The measure addresses a 61% rise in gasoline import costs driven by the war in Iran, per ANP data. Officials state the cuts will be partial and temporary, possibly for two months.

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Energy Minister Ximena Rincón stated that the supply of gas from Argentina to the Ñuble and Biobío regions will be restored during Saturday after a suspension due to failure to meet Chilean standards. The cut occurred on Thursday and did not affect residential supply. The industrial sector had backups to continue operating.

José Antonio Kast's government issued decrees tweaking the Mepco, allowing historic gasoline and diesel price hikes starting March 26. The move addresses surging oil prices from the Iran war and fiscal tightness, with relief for paraffin and transporters. Congress approved the bill after negotiations exempting SMEs from higher taxes.

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Frontera Energy and Ecopetrol have confirmed that the regasification terminal at Puerto Bahía will start operations with 126 million cubic feet per day (Mpcd) of gas by the end of 2026. The project will use existing infrastructure and involves a US$80 million investment from Frontera. The companies urge speeding up environmental and infrastructure permits.

 

 

 

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