The Argentine biodiesel supplier dissatisfaction with the government pricing

Argentina national newspaper reported 26, Argentine biodiesel since early march to small and medium enterprises supplier or supply to the oil company, to put pressure on the government for higher purchase price

Argentine government implements cascade pricing for biodiesel, the purchase price of the supplier, the three classes of small medium and large enterprises is a recent government adjust pricing in two months ago, small enterprise purchase price for 5222 pesos ($1044, or about $1. 5 pesos) per ton, each enterprise combines maximum amount for each year, 20000 tons of medium-sized enterprise purchase price is 5014 pesos per ton, each volume every year up to 100000 tons, large volume uncapped, prices for 4401 pesos per ton

Recent international biodiesel production material market prices and procurement costs continue to rise, but since early December last year, the government did not according to the cascade pricing agreement to adjust the purchase price by the month, for the lack of economies of scale and biofuel is sensitive to the cost of small and medium-sized enterprise influence is most obvious

Argentina is currently the world's largest exporter of biodiesel, the current annual output in 2.5 million tons to 2.8 million tons, most of them for export, Argentina's important export department at present, small and medium sized biodiesel enterprises accounted for about 40% of the total domestic supply, have considerable bargaining power

According to the national newspaper quoted insiders said, small and medium-sized biofuel companies may start from march, interruption of supply, in order to put pressure on the government to promote its requirement for improve the purchase price of these small and medium enterprises, to hedge against rising costs, after the adjustment the price should be around 5400 pesos per ton