Brazil extends 12% export tax on petroleum for up to 60 days

The Executive Management Committee of the Chamber of Foreign Trade (Gecex‑Camex) voted on 9 July to keep the 12 % export tax on crude oil and bituminous minerals for a further 60 days, with a review scheduled after 30 days. The Ministry of Development, Industry, Trade and Services said the temporary measure aims to safeguard domestic fuel supply and ensure sufficient feedstock for national refineries amid rising global oil prices.

The tax was first introduced by a provisional measure in March to offset the reduction of federal diesel taxes and to mitigate the impact of the Middle‑East conflict on domestic fuel costs. That provisional measure expires, but the tax was retained administratively without congressional approval. Finance Minister Dario Durigan noted the government is also re‑examining the timeline for removing fuel subsidies and will proceed cautiously.

The decision was justified by the deterioration of the geopolitical situation in the Middle East, especially renewed U.S.–Iran tensions and instability in the Strait of Hormuz, which affect about 20 % of world‑trade oil. Brent crude has hovered near US$ 80 per barrel. The measure has provoked criticism from industry leaders, who label it a “gross aberration,” and several oil companies are preparing legal challenges.