Small Argentine biodiesel producers want 47% price increase

In Argentina, small biodiesel producers are insisting on a 47% price increase for the fuel that is regulated monthly by the government. The significant price gap is a result of the higher soy feedstock prices that accounts for 38% of the price difference in addition to impacts from export tax policy. This demand flies in the face of the government’s wish to keep fuel prices low in order to control inflation that is resulting from the currency’s recent swings. The energy ministry is meeting with petroleum companies to see if they can absorb some of the potential price increase to help out biodiesel producers while keeping fuel costs down.