Argentina hikes biodiesel price for domestic market

BUENOS AIRES, Nov 30 (Reuters) - Argentina's government hiked the price of biodiesel - made in the country from soybean oil - for domestic consumption, aiming to keep its price just below the current high inflation rate.

Argentina, the world's largest exporter of soybean oil, has for years fixed the retail price of biofuels that are mixed with gasoline - with diesel in the case of biodiesel. The South American country is also an important biofuels producer.

The Ministry of Economy's energy secretariat retroactively established a value of 242,000 pesos ($1,449) per tonne of biodiesel sold from Nov. 15-30, from a previous price of 220,000 pesos, according to the country's official gazette.

The value of biodiesel will be adjusted in subsequent months by 4% per month, in line with price guidelines the government seeks to replicate throughout the economy to tame inflation, which in October stood at 6.3% and could reach 100% this year.

After the adjustments, the price of biodiesel will reach 283,106 pesos per tonne in March.

The new pricing scheme will take effect from Wednesday.

Reporting by Nicolas Misculin; Editing by Alexander Smith

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