[REVISION HISTORY]

Brazil extends gasoline subsidies and faces oil tax legality

Updated 5 times since CLSTR started tracking revisions of this situation.

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2026-08-28 13:37 UTC → 2026-08-28 23:17 UTC · added ~~removed~~

Brazil continues to manage fuel price volatility through fiscal measures and faces escalating legal disputes over petroleum taxation. The federal government has extended the gasoline subsidy of R$ 0.44 per liter until September 9 to mitigate the impact of high international Brent crude prices and geopolitical tensions in the Middle East. This measure has cost approximately R$ 2.4 billion since its implementation in May. Simultaneously, the legal battle regarding the 12% export tax on crude oil and bituminous minerals has intensified. Although the Gecex-Camex committee recently approved a 60-day extension of this tax, effective September 8, a Federal Court in Brasília has issued an injunction suspending its collection. The court ruling, issued by Judge Diego Câmara of the 17th Federal Court, follows a challenge by the Association of Brazilian Oil and Gas Exploration and Production Companies (Abep), which argues that the administrative renewal of the tax improperly bypasses the legislative process following the expiration of the original provisional measure in July. While the judge ordered the suspension of future collections, the ruling did not mandate the refund of the R$ 7.98 billion already collected by the Federal Revenue Service. Gecex-Camex maintains that the 12% rate is a regulatory tax that does not require legislative approval, arguing the extension is necessary to maintain revenue to offset federal tax reductions on diesel. The legal dispute between the administrative decision and the judicial injunction remains unresolved.

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