Brazil allocates R$12.3 bn extra for 2026 budget to offset fuel price spikes

The Mixed Budget Committee (CMO) approved eight provisional measures that add R$12.3 bn to Brazil’s 2026 budget. About R$10.3 bn is earmarked to cushion the impact of the Middle East war on gasoline, diesel and LPG prices, while R$2 bn will assist populations affected by climate‑related disasters.

Key measures include: MP 1342/26 directing R$1.3 bn to municipalities in Minas Gerais hit by historic rains; MP 1344/26 creating a R$10 bn credit to subsidise diesel; MP 1346/26 releasing R$20.4 m for tornado‑stricken towns in Paraná; MP 1347/26 opening R$285 m for municipalities across the country where floods and landslides have displaced more than 71 000 people; MP 1351/26 providing a R$330 m subsidy to LPG importers; MP 1361/26 allocating R$75.3 m for over 10 000 families in Zona da Mata; MP 1364/26 granting R$49.2 m for families in Pernambuco and Paraíba to purchase food; and MP 1367/26 setting aside R$337.5 m for forest‑fire prevention amid El Niño risks. The measures await further discussion in the Chamber of Deputies and the Senate. A separate proposal, PLN 17/26, which would open a new R$13.3 bn credit line, had its vote postponed.