BUENOS AIRES (Reuters) - Argentina's government announced on Wednesday it will increase the mandatory proportion of biodiesel used in the mix with fossil fuels to meet the highest local demand for diesel, especially from the agro-export sector.

Amid a prolonged energy deficit affecting argentina's balance, the Ministry of Energy will increase the mandatory mix for small and medium-sized enterprises by 50% to 7.5%.

On the other hand, a decree will allow all supplier companies to use temporary and exceptionally 5 additional percentage points of biodiesel in the mixture with diesel, according to a statement from the Ministry of Economy, which would increase the proportion of biodiesel to 12.5%.

"The global energy situation today presents scenarios of scarcity allied to high prices of diesel (diesel), domestic demand for diesel has faced increases of more than 14% during the first four months of the year, compared to the same period of the previous year," said the economic folder.

Argentina, one of the world's largest grain exporters, is one of the world's largest exporters of biodiesel made from soybean oil.

(By Walter Bianchi)

Source: IstoÉ Dinheiro