Brazil’s government on Friday extended fuel-price relief measures for another month and unveiled additional support aimed at shielding consumers from higher global oil prices, as President Luiz Inacio Lula da Silva seeks to ease cost-of-living pressures ahead of this month’s presidential runoff vote.
The new gasoline decree will reduce the tax burden by 0.89 reais ($0.18) per liter regarding PIS/COFINS and CIDE taxes, effectively zeroing out federal taxation on gasoline.
Finance Minister Dario Durigan in a press conference rejected suggestions that the measures were tied to the election campaign, saying fuel-related relief measures had been announced regularly since the start of the US-Israeli war against Iran.
The existing measures were due to expire on Friday, while the new package takes effect immediately
PIS/PASEP and Cofins taxes reduction at 0.19 reais per liter of ethanol was extended.
Importers of road diesel to receive an additional subsidy of 1.40 reais per liter for 30 days, on top of the existing 2.12 reais-per-liter support.
The government estimates the gasoline and ethanol measures will cost 3.6 billion reais in 2026, while the additional subsidy for imported diesel is expected to cost 1.6 billion reais over a 30-day period.
The government expects the measure to be passed on to consumers, effectively lowering fuel prices, Planning and Budget Minister Bruno Moretti said.
