# Argentina biodiesel policy and market

> Live situation record from CLSTR: https://clstr.news/situations/argentina-biodiesel-policy-and-market
> Updated: 2026-07-28T21:00:30.000Z. Sources: 4. Developments: 2.

In early July, the European Parliament voted down a proposed risk rule on soy‑based biodiesel, leaving Argentine exports unaffected. Later that month, Argentina’s Senate began debating a comprehensive biofuel reform backed by the ruling Libertad Avanza bloc. The draft law would deregulate fuel pricing, replace price caps with an import‑parity mechanism, and increase the mandatory biodiesel blend in diesel from 7.5% to 10% within a year, with a 15‑year horizon and a transition period ending in 2031. The legislative push comes as the country’s fuel market experiences a five‑month sales decline, with diesel volumes falling 8.9% year‑on‑year in June and gasoline sales slipping about 2%, while regional disparities persist. The reforms aim to stabilize the market and support domestic biodiesel producers amid the broader regulatory context set by the EU decision.

## Timeline

### 2026-07-28: Argentina debates biofuel law as fuel sales slump

Argentina's Senate debates a biofuel law raising blend mandates and deregulating prices, while the country's fuel sales have fallen for five months, with diesel down 8.9% and gasoline down about 2%.

4 sources. https://clstr.news/cluster/argentina-debates-biofuel-law-as-fuel-sales-slump

### 2026-07-08: EU Parliament rejects soy biodiesel risk rule, Argentine exports safe

The EU Parliament rejected a rule that would have barred Argentine soy biodiesel, keeping the market open and prompting a regulatory rewrite.

4 sources. https://clstr.news/cluster/eu-parliament-rejects-soy-biodiesel-risk-rule-argentine-exports-safe

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Cite as: Argentina biodiesel policy and market. CLSTR, https://clstr.news/situations/argentina-biodiesel-policy-and-market