Argentina's Energy Secretariat said Monday it increased ethanol prices by as much as 5% in July for oil refiners to blend into gasoline.
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Refiners must pay 9.437 pesos ($1.04) per liter for supplies of sugarcane-derived ethanol this month to meet a 10% blend requirement in gasoline, the secretariat said on its website.
That is up 5% from 8.987 pesos per liter in June.
Corn-based ethanol was raised to 7.171 pesos per liter in July, or 2% more than the 7.032 pesos in June, the secretariat added.
In September, the secretariat said it wouldn't allow ethanol prices to fluctuate by more than 5% per month, a move that ethanol producers have said could hurt profits as inflation runs fast.
Inflation is 30% annual this year, according to private estimates compiled by opposition lawmakers.
The biggest oil refiner is state-run YPF, trailed by Bridas' Axion Energy, Shell, Oil Combustibles and Petrobras.
Ethanol production rose 55% to 64,599 mt in March from 41,799 mt in the year-earlier period, and went up 25% compared with 51,625 mt in February, according to the latest numbers of the national statistics institute Indec.
Ethanol consumption rose 30% to 68,105 mt in March from 52,301 mt in March 2014, and was up 10% compared with 61,674 mt in February.