Argentina raises biofuel prices for domestic market by 5%

BUENOS AIRES, Jan 25 (Reuters) - Argentina's government has raised domestic prices for both sugarcane- and corn-based bioethanol, which are mandatory for mixing with gasoline in the South American country, by nearly 5%, an announcement in the official gazette said on Wednesday.

The economy ministry's energy department set bioethanol prices at 129.309 pesos per liter (about 0.70 dollars), up from the previous 123.422 pesos per liter.

Purchasers of bioethanol now have 30 days from invoicing to pay off the fuel, the resolution said. The measure is effective immediately.

Argentina, which has been trudging through an inflationary crisis, is a major global producer of biofuels, particularly biodiesel, and regularly raises prices for the domestic market. The country's annual inflation rate hit a more-than-30-year high in December, topping 95%.

($1 = 184.69 pesos )

Reporting by Hernan Nessi; Writing by Kylie Madry and editing by Sharon Singleton

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