Chile slashes taxes on biofuels to avoid social and health crisis
Quicknote bioenergy economics
It's winter time in the Southern hemisphere, and in Chile this means people start to heat their homes with natural gas or fuel oil. Cold temperatures in Argentina this week however decreased the supply of gas to Chile. Even though the Argentinean government declared that Chileans will be provided their regular supply of gas, the latter are seeking energy alternatives to ensure supplies for the country. Increased energy prices for transport fuels and natural gas means millions of poor and low income families are forced to choose between reducing their mobility or heating less. A cruel choice, for in many parts of Chile winter means temperatures below zero whereas mobility is an equally basic need.
In order to avoid such a potential social and health crisis caused by energy poverty, the Chilean Ministers of Economy, Energy, Agriculture and Revenue - led by the left-wing government of President Bachelet - have decided to exempt biofuels from a tax in order to promote their use to boost energy security.
According to Ecoperiódico [*Spanish], the tax applies to gasoline and diesel, and with this measure the prices of bioethanol and biodiesel will be a third of the price of one liter of gasoline. This must allow the poor and lower incomes to save on energy expenditures, or at least to make it through winter.
bioenergy :: biofuels :: energy :: sustainability :: ethanol :: biodiesel :: energy security :: natural gas :: Chile ::
It's winter time in the Southern hemisphere, and in Chile this means people start to heat their homes with natural gas or fuel oil. Cold temperatures in Argentina this week however decreased the supply of gas to Chile. Even though the Argentinean government declared that Chileans will be provided their regular supply of gas, the latter are seeking energy alternatives to ensure supplies for the country. Increased energy prices for transport fuels and natural gas means millions of poor and low income families are forced to choose between reducing their mobility or heating less. A cruel choice, for in many parts of Chile winter means temperatures below zero whereas mobility is an equally basic need.
In order to avoid such a potential social and health crisis caused by energy poverty, the Chilean Ministers of Economy, Energy, Agriculture and Revenue - led by the left-wing government of President Bachelet - have decided to exempt biofuels from a tax in order to promote their use to boost energy security.
According to Ecoperiódico [*Spanish], the tax applies to gasoline and diesel, and with this measure the prices of bioethanol and biodiesel will be a third of the price of one liter of gasoline. This must allow the poor and lower incomes to save on energy expenditures, or at least to make it through winter.
Chile decided this Wednesday to eliminate a specific tax on biofuel, that is also paid on gasoline and diesel in order to promote their use. This takes place in the middle of the concerns about the reduced supply of gas from Argentina, which is the only supplier of this resource.The note continues explaining that Chile imports almost all of the fuel it consumes, and this decision will help reduce the fluctuations in fuel prices and gas supply. One of the most affected areas is the northern part of the country. Here, the Ministry of the Interior is working on an agreement [*Spanish] with the University of Tarapacá to develop a test field of Jatropha curcas on 1,500 hectares. The oil-seeds of this crop yields a feedstock for cold tolerant biodiesel that can be used in vehicles as well as in heating stoves and boilers [entry ends here].
bioenergy :: biofuels :: energy :: sustainability :: ethanol :: biodiesel :: energy security :: natural gas :: Chile ::
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home