Argentina debates biofuel law as fuel sales slump

The Argentine Senate is reviewing a biofuel reform backed by the ruling Libertad Avanza bloc and signed by Patricia Bullrich. The proposal would deregulate fuel pricing, replace maximum price caps with an import‑parity scheme, and raise mandatory blend percentages—setting a 7.5% biodiesel cut for diesel that would increase to 10% within a year. The law is slated for a 15‑year term with a transition phase for blends and quotas lasting until 31 December 2031.

At the same time, Argentina’s fuel market has seen a five‑month consecutive decline in sales. In June, total fuel deliveries fell 2.9% year‑on‑year to 1.33 million m³, with diesel (G2) down 8.9% and gasoline (nafta) slipping around 2%. Regional data show growth in Neuquén due to Vaca Muerta activity, while Salta, Formosa and Córdoba experienced the steepest drops. YPF remains the market leader despite a 1.6% sales dip, and price stability has been maintained through a buffer mechanism that shields consumers from crude‑price volatility.