Brazil extends gasoline subsidy by 30 days amid oil price surge
The Brazilian government extended the gasoline subsidy of R$ 0.44 per litre for an additional 30 days, starting 26 July, after Finance Minister Dario Durigan signed a decree on 23 July. The measure, aimed at shielding consumers from the recent jump in international oil prices triggered by renewed conflict in the Middle East, keeps the subsidy paid directly to producers and importers through the National Agency of Petroleum, Natural Gas and Biofuels (ANP).
At the same time, the diesel subsidy of R$ 1.12 per litre remains in force, but the extra discount of R$ 0.35 per litre, suspended in early July, will not be reinstated. Planning and Budget Minister Bruno Moretti said the current oil price level has not yet created sufficient impact on domestic fuel prices to justify restoring the additional diesel discount. The gasoline subsidy costs about R$ 1.3 billion per month, while the diesel support costs roughly R$ 5.5 billion per month. The government also confirmed the mandatory ethanol blend in gasoline was raised to 32 percent for a 180‑day period.