en.Wedoany.com Reported - On July 31, the Brazilian government published Provisional Measure No. 1381 in the Official Gazette of the Union, allocating 3.473 billion reais to subsidize gasoline and diesel.

The provisional measure allocates 1.243 billion reais for the subsidy of 0.44 reais per liter of gasoline established by Provisional Measure No. 1358, and 2.23 billion reais for the subsidy of 1.12 reais per liter of diesel established by Provisional Measure No. 1363.

With this, the government has allocated a cumulative total of 17.683 billion reais for fuel subsidies. These subsidies have been in effect since March, aiming to cushion the impact of rising global fuel prices caused by the conflict.

Below is a list of the provisional measures issued and their current status.

Provisional Measure No. 1340: Established a subsidy of 0.32 reais per liter for producers and importers of road diesel, but the measure lapsed before being reviewed. The government retained the 12% tax rate on oil exports established therein, valid until early September.

Provisional Measure No. 1344: Allocated 10 billion reais for the diesel subsidy of Provisional Measure No. 1340. The measure was approved by the Chamber of Deputies but lost effect before a vote in the Senate.

Provisional Measure No. 1349: Established a subsidy of 850 reais per ton of imported liquefied petroleum gas (LPG) (approximately 85 centavos of a real per kilogram), while increasing the domestic diesel subsidy by 0.80 reais and providing an additional 1.20 reais subsidy for imported diesel, equivalent to the Tax on Circulation of Goods and Services (ICMS) levied by states. This subsidy is no longer in effect, and the measure must be voted on by Congress by August 4.

Provisional Measure No. 1351: Allocated 330 million reais for the LPG subsidy of Provisional Measure No. 1349. The case awaits a congressional vote by September 10.

Provisional Measure No. 1358: Established subsidies of 0.3515 reais per liter of diesel and 0.44 reais per liter of gasoline. The diesel subsidy was revoked on July 1, while the gasoline subsidy was extended until the end of August. The measure can be reviewed until September 9.

Provisional Measure No. 1363: Established a subsidy of 1.12 reais per liter of diesel, with validity extended until mid-September. This measure replaces the diesel subsidies of Provisional Measures No. 1340 and No. 1349 and can be voted on until September 26.

Provisional Measure No. 1372: Allocated 550 million reais for the road diesel subsidy of Provisional Measure No. 1349. The case can be voted on until August 27.

Provisional Measure No. 1380: Allocated 1.23 billion reais for Provisional Measure No. 1358 and 2.1 billion reais for Provisional Measure No. 1363. Can be voted on until September 20.

Provisional Measure No. 1381: Allocated 1.243 billion reais for Provisional Measure No. 1358 and 2.23 billion reais for Provisional Measure No. 1363. Can be voted on until September 28.

The government also issued a decree valid until July 31, reducing the PIS/Cofins tax rates to zero on imported and sold biodiesel and aviation kerosene (QAV), and doubling the LPG subsidy to 660 million reais.

When legislative work resumes in August, the Chamber of Deputies will discuss Complementary Bill No. 114/2026 (PLP 114/2026), which proposes using the surplus from oil revenues to create budget space for subsidies. The rapporteur is Congresswoman Marussa Boldrin (Republicans/Goiás).

According to the Brazilian Institute of Petroleum, Gas and Biofuels (IBP), Brazil allocated 36.5 billion reais in royalties in the first half of 2026, 35% higher than initially expected for the year, due to the average Brent barrel price rising to 92.56 US dollars and the oil export tax.