The Argentine government extended yesterday (25) the deadline for the use of a larger biodiesel mixture of 12.5%, to avoid increases in fuel imports, after having raised in June the previous mixture of 5%.

Argentina relies heavily on imports to meet its fuel demand, which requires costly foreign currencies that the government seeks to hold back while trying to hold back high inflation in the country.

Argentina is also a major exporter of biodiesel, made with locally produced soybean oil.

"We are convinced that we should bet on biofuels, which allow us to save foreign exchange (reserves). That's why we decided... extend the mix," Energy Minister Flavia Royon said on Twitter.

Royon did not say how long the 12.5% mixing rate would be in place, and the ministry did not respond to a request for comment.

Source: Forbes