Brazilian Congress Extends Diesel Subsidy of R$1.12 per Liter for 60 Days
2026-07-18 10:39
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en.Wedoany.com Reported - The Brazilian Congress has extended the economic subsidy of R$1.12 per liter for diesel producers and importers for an additional 60 days.

Davi Alcolumbre at the podium of the Chamber of Deputies plenary session during the joint session of Congress on November 27, 2025, to consider vetoes

The bill extending the subsidy was published this Friday (July 17) in the Official Gazette of the Union (Diário Oficial da União). The bill is based on Provisional Measure No. 1,363 (Medida Provisória nº 1.363), enacted on May 30, which served as the original legal basis for the subsidy. The resurgence of conflict between the United States and Iran in the Middle East, along with rising crude oil prices, has impacted the government's plans to eliminate fuel subsidies.

Last week, Congress extended Provisional Measure No. 1,358/2026 (MP 1.358/2026), which concerns subsidies for producers and importers of petroleum-derived fuels. The new deadline for deliberation is now September 23.

The Chamber of Deputies (Câmara dos Deputados) has approved Provisional Measure No. 1,344/2026 (MP 1.344/2026), which opens a special credit of R$10 billion in the 2026 budget to subsidize part of the diesel price affected by the US war against Iran. The text is still pending review by the Senate (Senado).

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