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Argentina changes biofuel pricing in line with surging inflation

BUENOS AIRES, Oct 25 (Reuters) - Argentina's government has set new criteria for fixing the value of sugar cane- and corn-based bioethanol used in gasoline for domestic consumption, the country's official gazette said on Tuesday.

The measure aims to adjust prices in line with the sharp rise in inflation in the country, which could exceed 100% this year.

The ministry of economy's energy secretariat said in the resolution the prices "will be updated in accordance with and proportionally to the variation in the price of petrol at the pump".

The resolution proposed the possibility of alternative pricing mechanisms in cases of substantial discrepancies with the biofuel production costs.

According to data from the energy secretariat, the value of sugar cane-based bioethanol is 88.24 pesos per litre, while the price for corn-based bioethanol is trading at 107.411 pesos per litre.

Argentina's biofuel exports are on track to set a record this year, said a recent report by consultancy firm Investigaciones Económicas Sectoriales (IES).

"In 2022, sector activity will show an increase in production and sales for both biodiesel and bioethanol," it said. (Reporting by Hernan Nessi Editing by Marguerita Choy)

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