Politics · Brazil · 2 days ago
Brazil cuts fuel taxes and expands subsidies in R$5.2 billion package
Brazil’s federal government has announced a 30-day package to reduce pressure from rising fuel prices.
It will remove the remaining federal taxes on gasoline, bringing the tax cut to R$0.89 per litre.
The package also renews support for ethanol and adds a R$1.40-per-litre subsidy for imported diesel.
The government estimates the measures will cost R$5.2 billion and says higher revenue from oil will help pay for them.
Officials link the pressure on prices to rising international oil costs amid the conflict involving Iran and other factors.
A previous gasoline tax cut did not lead to lower pump prices, according to Brazil’s oil regulator, so the government says it will monitor prices and enforce the pass-through of savings.
The announcement comes 16 days before the presidential election’s second round, although ministers say the timing is not election-related.
Brazil’s federal government announced a one-month package of fuel tax cuts and subsidies estimated to cost R$5.2 billion.
The measures zero federal taxes on gasoline, renew an ethanol subsidy and add support for imported diesel.
The gasoline tax relief rises from R$0.63 to R$0.89 per litre, according to the reports.
The government says the measures respond to rising fuel costs linked to international oil prices and conflict in the Middle East.
The announcement came 16 days before the presidential election runoff.
- Who
- Brazil’s federal government, including ministers Bruno Moretti and Dario Durigan.
- What
- The government announced a one-month package of fuel tax cuts and subsidies, including zero federal taxes on gasoline.
- When
- Friday, October 9, 2026; the measures are valid for 30 days.
- Where
- Brazil.
- Why
- The government cited rising fuel costs and international oil prices. It said the measures aim to protect the public from higher prices.
This story does not have two clearly opposing sides.
O Brasil é um exportador de óleo, arrecada mais com os preços voláteis em patamares mais altos e a nossa lógica passa por converter essa receita extraordinária em políticas de proteção da população
Não tem nenhuma mudança em relação a timing eleitoral por conta do anúncio, mas sim o que a gente tem percebido, uma avaliação quase diária agora com os vários times, de que o preço segue pressionando bastante
liberdade de preço não se confunde com liberdade de abuso de preços
The government had announced federal gasoline tax relief of R$0.63 per litre and an ethanol subsidy of R$0.19 per litre.
The government announced expanded gasoline tax relief, renewed ethanol support and a new subsidy for imported diesel.
The presidential election runoff was scheduled to take place, 16 days after the announcement.
- Total package cost
- R$5.2 billion over 30 days
- Gasoline tax relief
- R$0.89 per litre
- Additional gasoline relief
- R$0.26 per litre
- Ethanol subsidy
- R$0.19 per litre tax relief; producer subsidy raised from R$0.25 to R$0.43 per litre
- Imported diesel subsidy
- R$1.40 per litre
- Runoff date
- October 25, 2026
Sources
A 16 dias para eleições, governo anuncia medidas para baratear combustíveis
Governo vai zerar tributação sobre gasolina em meio às eleições e impacto passa a R$ 2,7 bi por mês
Governo zera impostos federais sobre a gasolina
Governo zera imposto federal da gasolina e renova subsídio do etanol a 16 dias das eleições; custo é de R$ 5,2 bi
Related news
Lula won more election-court cases than Flávio Bolsonaro in first round
Ratinho Jr. backs Flávio Bolsonaro in Brazil’s presidential runoff
Flávio Bolsonaro visits to his father set to resume after suspension ends
Lula rallies in São Paulo for more worker rest days before Brazil runoff
Lula campaign accuses Meta of limiting its posts before Brazil runoff
Brazil’s 2026 first-round abstention was 32.9 million voters
Writer says Flávio Bolsonaro could threaten Brazil’s culture and freedoms
Column argues Lula’s government has failed to protect political debate
Young candidates top vote counts, but half of Brazil’s lower house is 49 or older
Lula supporters rally in São Paulo as he trails Flávio Bolsonaro
Flávio Bolsonaro asks election court to investigate Brazil’s police chief
