Argentina's government has extended its 12.5pc biodiesel blend rate to avoid importing more fuel, the energy ministry said.
The extension was announced after the initial period expired on 16 August. Argentina raised its biodiesel blending mandate in mid-June to 12.5pc from the previous 5pc for 60 days in a move to address a prolonged shortage of diesel.
"We are convinced that we must bet on biofuels, which allow us to save foreign currency. That is why we have decided to extend the cut," energy minister Flavia Royon said.
Argentina is a major exporter of biodiesel, made using locally produced soybean oil. The blending mandate increase leads to tighter global supplies of soybean oil from the world's largest exporter, which had already been squeezed because of a drought at the beginning of the year.
There was no specification on how long the 12.5pc blend rate would be in effect.
