Jun 30, 2014 - Argentine firm New Fuel SA last week started biodiesel supplies from its plant in the industrial park of Villaguay, in Entre Rios province, to state-run oil company YPF (BUE:YPFD), local media said.
Launched a year ago, the biodiesel plant remained inactive due to government decisions to hike taxes on biodiesel exports and reduce the domestic price.
In December, the state sought to stimulate biodiesel sales, increasing the share of biodiesel in the local fuel blend to 10% from 7%, while in May 2014 it lowered the export taxes. The measures enabled New Fuel to negotiate commercial agreements.
The firm received a permit in 2010 to supply 11.3 million litres (3m gallons) of biodiesel annually for the domestic market.
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