Brazil implements new fuel market fraud controls and ethanol measures

Brazil has implemented significant regulatory changes to the fuel market through two primary channels: new anti-fraud measures and the approval of Complementary Law Project (PLP) 114/2026.

Resolution No. 10, issued by the Ministry of Mines and Energy and the National Energy Policy Council (CNPE), strengthens the National Petroleum, Natural Gas and Biofuels Agency (ANP) in combating fraud and adulteration. Key provisions include mandatory certified electronic record-keeping for fuel stocks, prices, and transactions at retail stations. The ANP will also increase cooperation with agencies like Procon and federal police, and may suspend import licenses if fraud is suspected.

Simultaneously, Congress approved PLP 114/2026, which aims to maintain ethanol competitiveness and provides mechanisms for tax reductions during international oil price spikes. The Ministry of Planning and Budget noted the project's fiscal impact, estimating costs of approximately R$ 1.95 billion in 2026 and potential savings of at least R$ 10 billion annually between 2027 and 2031 if primary deficits occur. The bill includes tax incentives for the fertilizer industry and critical minerals, alongside the advancement of funds for health and education.