Brazilian Government Extends Diesel Subsidy of BRL 2.12 per Liter for 30 Days
en.Wedoany.com Reported - On October 27, the Brazilian government, through Ministerial Ordinance No. 3181 of the Ministry of Finance, extended the subsidy policy of BRL 2.12 per liter for road transport diesel for 30 days, applicable to eligible diesel producers and importers. The policy is implemented under Provisional Measure No. 1391 issued on September 11, 2026. During the extension period, the original subsidy standard continues to apply, and the government will decide whether to renew it again based on changes in the international fuel market.
The extended subsidy is part of Brazil's existing diesel price support measures. An official announcement released by the Brazilian Ministry of Finance on October 28 confirmed that the subsidy covers the production and import segments, with an extension period of 30 days. The government plans to offset subsidy expenditures through additional fiscal revenue related to oil, maintaining a fiscally neutral arrangement for the measure.
The Brazilian government had previously also established a special subsidy measure for imported diesel, providing an additional subsidy of BRL 1.40 per liter for eligible imported road diesel, also for a period of 30 days. This subsidy is implemented separately from the extended regular subsidy of BRL 2.12 per liter, with different scope of application and policy basis.
Data provided by the Brazilian Ministry of Finance show that imported diesel accounts for more than 25% of the country's domestic diesel consumption. In the renewal document, the government cited rising international refining margins, Russian fuel export restrictions, and tight international supply as the basis for continuing the diesel subsidy. Subsequent subsidy renewals will be reassessed based on international fuel market conditions.
