Argentine biodiesel well below price of imported fossil diesel in Uruguay
In Argentina, Bichos del Campo reports the collapse generated by the Russian-Ukrainian conflict, which promoted a gigantic increase in the international price of diesel, markedly improved the competitiveness of soybean oil in the Argentine market. In October, the import parity value of low-sulfur diesel in Uruguay – placed in distribution plant – is at a price equivalent to 2026 Argentine pesos per liter, according to data from the Regulatory Unit of Energy and Water Services of Uruguay (Ursea). Meanwhile, the official price of biodiesel in Argentina — determined by the Energy Secretariat for compulsory oil cutting — is at 1788 pesos per liter (biodiesel plant exit price).
Although the price of Argentine biodiesel is necessary to add the cost of the freight to the refinery, which varies according to the supplier, even when adding that component remains much lower than the value of the imported diesel.
Although the FOB value of Argentine soybean oil — the base input of biodiesel in the country — has increased in the last month, this increase was not proportional to the strong rise experienced by diesel in the international market.
Category: Fuels
