After oil shock, Argentina allows upto 15% ethanol to be blended into gasoline

The government of Argentina announced on Friday that it would 'allow local firms to voluntarily blend up to 15% ethanol in gasoline. This is a move designed to reduce the impact of higher oil prices on fuel costs.

The Energy Secretariat issued a statement saying that the measure was designed to "give industry more flexibility" and to "protect consumers from any potential increase in fuel prices." According to analyst estimates, gasoline prices in South America rose by more than 18% during 'March. This was largely due to the U.S./Israel war against Iran. They have also risen more than 60% in the past year.

The Energy Secretariat of Argentina, which is under the Ministry of Economy's jurisdiction, has increased the maximum oxygen content allowed in fuels to 5.6%. This allows refiners to use more ethanol and less gasoline to reduce costs.

The resolution did not change the bioethanol blend or impose any new requirements to refiners. The resolution also doesn't 'introduce any changes to the current biodiesel regime that already allows blends up to 20%. Gabriel Araujo, Gabriel Sigal and Lucila Sigal report. Editing by Cassandra Garrison)

(source: Reuters)