The Senate is in the process of debating one of the projects most resisted by oil companies and auto plants: the Amending Law 27,640which regulates the use and production of biofuels.
The initiative is registered under the file S-1495/2024suggests Increasing the mandatory reduction rate for ethanol and biodiesel in gasoline and diesel to 15%.This is a measure that the producing provinces celebrated, but the oil and automobile sectors questioned it and warned of the costs and technical risks.
According to Report prepared by the Congressional Budget Office (CPO)The project – promoted by the ruling party and with the comprehensive support of senators from the north and center of the country – It will have a negative financial impact of $245,952.5 million in 2026 values.
The document is signed by the General Director Gabriel Esterel And financial analysis manager Martin Lopez Amoroswas sent to Senate Budget and Finance CommitteeChaired by Ezequiel Atoch, who requested an estimate before issuing a possible opinion.
“Given that biofuels are exempt from the tax on liquid fuels and carbon dioxide, raising the mandatory reduction to 15% would mean lower collection of these taxes,” the technical report said.
The OPC study shows that the effect arises mainly from Increased tax expenditures resulting from tax exemption to biofuels.
In terms of numbers, the estimated loss is spread across different destinations of funds: $69.223 million less for the Single Social Security System, $68.957 million for the Transportation Infrastructure Fund, $25.093 million for the National Treasury, and a loss of more than $36 billion in the National Housing Fund, among other contributions that could be shared with the provinces.
“The increase in deductions generates a net negative effect on collections, which is not offset by a reduction in other associated tax expenditures.”concludes the document.
What the project proposes
The text eliminates the transitional nature of the current system, valid until 2030, and Oil companies are allowed to participate in the supply of biofuelsThis is restricted in the current law.
also Establish a public and transparent bidding system to determine prices and volumes Supply, replacing the price system regulated by the Ministry of Energy.
The mandatory reduction schedule expects gradual increases until it reaches 15% of the mixture in 2027 for diesel and 2026 for gasoline. in Patagonia regionThe commitment will be 10% “until determined by the implementing authority.”
Parliamentary state
Project It has already been discussed in the Energy and Mining Committee But the possibility of a ruling has been postponed until after the elections, which further complicates the chances before the regular sessions end.
But it is an issue directly related to negotiating the budget and conflicts with the interests of the governorates, as they seek to obtain a share of next year’s expectations.
Its treatment generates Strong transverse pressures: the Oil companies Demanding a gradual and optional scheme for mixtures, whereas Car stations They warn against it Mixtures greater than 12% It can affect the durability of engines designed under more restrictive international regulations.
in contrast, Northern and coastal governoratesWith sector rooms celebrating the progress of the project Production and environmental impact.
While the ruling party tries to secure the votes needed for its approval, the financial cost projected by the OPC opens a new front for debate: Loss of tax revenue in the context of fiscal adjustment.
The law was approved in 2021, but due to the difficult negotiations that took place at that time, there were sectors that were not satisfied and almost immediately returned to the battle to increase the presence of biofuels.
New prices
Meanwhile, yesterday, the Energy Secretariat of the Ministry of Economy officially announced the new prices for bioethanol and biodiesel intended for mandatory blending with fossil fuels.
The new values and amendments to the mandatory diesel cut-off ratio were determined by the Authority’s decisions and entered into force.
The minimum price for bioethanol made from sugarcane is set at $918,025 per liter, while the minimum price for bioethanol made from corn is $841,394 per litre.
For its part, the purchase price of biodiesel for mandatory blending is $1,688,961 per ton.
In addition, the mandatory mixing ratio of biodiesel with gas oil and diesel oil has been temporarily reduced by 7%, measured on the total amount of the final product.
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