The national government announced on Apr. 3 an increase in the required blend of bioethanol in gasoline from 12 percent to 15 percent, a move that could benefit the productive sector of northwest Argentina amid volatile international oil prices and a need to reduce fuel imports.
The measure, promoted by the National Energy Secretariat, is expected to substitute imported fuel and strengthen regional economies tied to sugarcane and corn production. Jorge Feijoó said the change is significant for several reasons: “This is very important from various perspectives for the country because it means avoiding more imports of gasoline to meet demand in Argentina. In addition to domestically produced gasoline, it is necessary to import some, so this additional three percent of bioethanol replaces imported fuel. And bioethanol is very competitive compared with gasoline that receives all the shock from oil price increases.”
Feijoó highlighted sustained growth in bioethanol production, which reached record levels last year and is projected to rise further with the upcoming harvest. He said: “This year, bioethanol production has been 612,000 cubic meters—six percent more than last year—a record for alcohol production.” He added that projections for the coming months estimate reaching up to 625,000 cubic meters.
He also pointed out economic benefits: “Last year bioethanol avoided gasoline imports worth $619 million dollars. Over seven or eight years it has substituted $5.7 billion dollars in imports.” According to Feijoó, this helps save foreign currency at a time when such savings are crucial.
Regarding infrastructure capacity for further growth, Feijoó said investments since Argentina’s Bioethanol Plan began in 2010 have led sugarcane cultivation areas in Jujuy, Salta and Tucumán provinces to expand by fifty percent and tripled alcohol output while doubling sugar exports.
Addressing consumer concerns about vehicle compatibility with higher ethanol blends, Feijoó stated: “All vehicles nationwide are fully able to handle fifteen percent ethanol blends without issue.” He noted similar or higher blending standards exist internationally—including Brazil at thirty percent and Paraguay at twenty-five percent—and over sixty countries use ethanol-blended fuels.
Feijoó concluded that although implementation remains voluntary for now among mixing companies due to competitiveness against imported fuels: “We hope soon it will become mandatory as with the current twelve-percent system—benefiting producing provinces like those in northwest Argentina.”
