Argentina decreases price cut on ethanol for refiners

Argentina’s energy ministry has partially backtracked on a price cut on ethanol introduced earlier this month for refiners who mix the biofuel into gasoline at a 12% ratio, according to Hellenic Shipping News.

The price cut has been shaved to 7.5% from 15% for sugarcane-derived ethanol, and to 10.5% from 21.1% for supplies made from corn, the ministry said in a resolution in the Official Bulletin, the government’s newspaper of record, according to the Hellenic Shipping News.

The news channel said the ministry stated that the move came after ethanol producers provided information about production costs that “had not been contemplated” in the original price calculation.

On November 2, the ministry, which sets ethanol pricing, slashed the price for sugarcane-derived ethanol by 15% to Peso 14.342/litre(82 cents/liter) from Peso 16.873/litre in October.

Now with the resolution, it has lifted the price to Peso 15.608/litre, or 7.5% less than in October.

According to Hellenic Shipping News, ethanol producers argued the large price reduction could push some companies out of business.