Argentina raised the price of biodiesel used in domestic fuel mixes in response to a sharp devaluation in the Peso currency and new taxes on primary exports, the government said in its official gazette on Monday.
The Energy Secretary's decision set the new price at 26,509 pesos (US$710.70) per ton, 17% higher than the 22,589 Pesos per ton it had set at the beginning of the month.
The peso lost 16% of its value against the dollar at the end of August amounting to a nearly 50% devaluation this year, spurring Argentina to re-negotiate a US$ 50 billion standby financing deal it struck with the International Monetary Fund in June.
The price increases reflect the recent exchange rate fluctuations, in addition to the impact the export duties have had on the price of soy oil, the primary ingredient in biodiesel, the report said.
The government, which sets the price of domestic biofuels, mandates diesel fuel mixes sold in Argentina contain 10% biodiesel. Last year, Argentina consumed 1.17 million tons of biodiesel, according to that state statistics agency, Indec.
Argentina is the world's largest exporter of soybean oil and soymeal for livestock feed, and the No. 3 exporter of raw soybeans.