Not in force yet
The mandatory biofuel blend goes up, and the market stops being closed
First-round approval by the Senate, Sep 17, 2026 (41-25) · in the Chamber of Deputies
pendingNATIONAL
Energy and natural resources
First-round approval by the Senate (Sep 17, 2026), now in the Chamber of Deputies: biodiesel goes from 7.5% to 10% and bioethanol from 12% to 15% 12 months after the law, with 6% for sugarcane.
The other rules on this subject43
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Hydrocarbons: the pre-export local offer fallsSE Res. 166/2026 (Official Gazette, Jul 22, 2026)in force
What changed and who it applies to
What changed
It has had a half-sanction from the Senate since 17 September 2026, by 41 votes to 25, and moves to the Chamber of Deputies. It is not in force yet. What changes if it becomes law: the mandatory biodiesel blend moves to a legal minimum of 7.5% of diesel, rising to 10% twelve months after enactment —today the legal floor under Law 27,640 is 5% and the 7.5% rests on a resolution, not on the law— and bioethanol goes from 12% to 15% of gasoline, also after twelve months. Within bioethanol it reserves 6% for sugar-cane output and 6% for corn. It creates a system of auctions in a single electronic market to supply the mandatory blends and requires reference prices to be published. It allows blending above the minimums, regulates biomethane and sustainable aviation fuel, permits imports in case of supply shortages, sets a transition for biodiesel until 1 January 2036, runs for 15 years, names the Energy Secretariat as enforcement authority and repeals Law 27,640 together with all its implementing rules. verif Sep 17, 2026 ↗
In force
Not in force. The Senate gave it first-round approval on Sep 17, 2026 by 41 votes to 25 and the bill moved to the Chamber of Deputies, where according to the parliamentary press it was entered as file CD-76/26 and referred to two committees, Energy and Fuels and Budget and Treasury; there is no committee report. Only once the Chamber of Deputies passes it is there a law, and the new blends are counted from that passage: biodiesel starts at 7.5% and rises to 10% after 12 months, and bioethanol starts at 12% and rises to 15% after 12 months. Meanwhile the current scheme applies: the Secretariat of Energy set the October 2026 biodiesel price without touching the blend percentage. prob Sep 26, 2026 ↗
Who it applies to
Sugar mills in the north and corn-based bioethanol plants, which would move from quota allocation to a floor by feedstock plus a competitive tranche; soybean-oil biodiesel producers, today concentrated in Santa Fe; refiners, who are required to buy and blend; and any company that today cannot enter the biodiesel market because article 11 of Law 27,640 bars it until the installed capacity of the incumbents is used up. prob Jul 15, 2021 ↗
Our reading
There are two different things inside the same bill, and it pays not to confuse them. One is more mandate: the State forces higher biofuel blending, and that is demand created by law, not by the market. The other is less of a lock, and it is the one that matters to anyone who wants in: today the law bars a new company from joining the biodiesel market until the incumbents' capacity is full, and the bill replaces that ban with an electronic auction capped at 20% per company. For a northern producer, on top of that, the 6% reserved for sugarcane bioethanol turns a slice of the blend into demand with a written floor. Movement of 17-Sep-2026: it obtained a half-sanction from the Senate and moves to the Chamber of Deputies. If enacted, the jump in bioethanol from 12% to 15% with 6% reserved for sugar cane and 6% for corn distributes guaranteed demand by feedstock, and that reads differently in the sugar-cane Northwest than in the corn Pampas. thesis
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Where it lands, province by province1
Salta Salta produces sugarcane bioethanol: the San Martín del Tabacal mill and refinery, in Orán, owned by Seaboard Corporation, is one of the country's largest producers and runs two distilleries. The 6% of the gasoline blend reserved for sugarcane is mandatory demand with a written floor for that product, and the jump from 12% to 15% enlarges the pie being shared. What cannot be claimed yet: how much of that quota Salta would capture against Tucumán and Jujuy, which produce the same thing and more. And Senator Flavia Royón, from Salta, authored one of the six bills folded into the report — which says the province is inside the negotiation, not that the outcome suits it. favorable opening and deregulation thesis
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Analysis and curation: Ignacio Aredez
Head of Despegue
Method and track record →- 20+ years in technology, 15 of them in data and AI, for clients across Europe and the Americas
- Certified in AI governance (ISO/IEC 42001)
- Machine Learning (Google Cloud)
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verif primary source · prob primary source pending · unconf a source said it · estim our own calculation · thesis our reading · the date belongs to the datum, at the precision its source allows