Brazil announces R$ 7 billion monthly fuel subsidy package

The Brazilian federal government has announced a new package of measures to curb rising fuel prices, with an estimated monthly cost of R$ 7 billion. Announced by Planning and Budget Minister Bruno Moretti, the package includes tax reductions on gasoline and ethanol, alongside a new subsidy for road diesel.

A decree signed by President Luiz Inácio Lula da Silva reduces PIS/Pasep and Cofins taxes on gasoline by R$ 0.63 per liter, bringing the federal tax rate down to R$ 0.16 per liter. For hydrated ethanol, federal taxes will be temporarily zeroed, resulting in a reduction of R$ 0.19 per liter. These measures are valid from September 10 to October 9.

Additionally, a provisional measure authorizes a new subsidy of R$ 1 per liter for road diesel. The Ministry of Finance will regulate this value and review it every 30 days. While the monthly impact of the new measures is R$ 7 billion, the total cost for September is estimated at R$ 12.5 billion due to the overlap with the existing diesel subsidy, which remains in effect until September 27.

Between March and August, the government spent or forewent R$ 25 billion to contain fuel prices. Including the September measures, the cumulative total for 2026 reaches R$ 37.5 billion.