Business · Energy & Commodities · 1 day ago
Brazil’s fuel measures keep prices below international levels, industry groups say
Brazilian industry representatives say fuel could cost about twice as much without government action to limit the effect of higher international oil prices linked to the war in Iran.
The measures include tax cuts, subsidies and support for domestic refining, while Petrobras has held back sharp increases in refinery prices.
Petrobras’s refinery prices are far below international benchmarks: the article gives diesel at R$3.57 per litre versus R$7.497 internationally, and gasoline at about R$3.80 versus R$7.00.
The policies have helped limit price rises and inflation in Brazil, but private importers say they cannot compete with fuel sold domestically at lower prices.
Industry representatives warn the gap may weaken imports and private refineries over time, even as consumers benefit in the short term.
Two diesel subsidies are due to expire in November, one on November 12 and the other later in the month; no further government action is specified.
Industry representatives say Brazilian government measures have kept fuel prices below international levels after a global oil-price shock.
Abicom data cited in the report put Petrobras’s refinery diesel price at R$3.57 per litre, compared with R$7.497 internationally.
For gasoline, the reported refinery price was about R$3.80 per litre, against about R$7.00 internationally.
Measures included increased domestic refining, limits on refinery price increases, tax relief and subsidies.
Industry representatives say the measures have restrained inflation in the short term but hurt importers and private refiners.
- Who
- Brazilian fuel industry representatives, including Evaristo Pinheiro of Refina Brasil and Sérgio Araújo of Abicom, assessed the government’s measures.
- What
- They said government measures have held domestic fuel prices below international levels, while distorting prices and limiting import competitiveness.
- When
- The article was published on November 8, 2026. One diesel subsidy was due to expire on November 12.
- Where
- Brazil.
- Why
- The measures aimed to cushion the domestic market from an international oil-price shock linked in the article to the war in Iran.
This story does not have two clearly opposing sides.
CNN Brasil published the report on government measures and fuel prices.
A diesel subsidy of R$1.40 was due to expire.
A second diesel subsidy of R$2.12 was due to expire toward the end of the month.
- Diesel refinery price
- R$3.57 per litre at Petrobras, compared with R$7.497 internationally
- Gasoline refinery price
- About R$3.80 per litre at Petrobras, compared with about R$7.00 internationally
- Refining capacity
- Petrobras was operating near 98% of capacity
- Diesel subsidy
- R$1.40 subsidy due to expire November 12
- Second diesel subsidy
- R$2.12 subsidy due to expire toward the end of November
What people are saying
Roughly speaking, diesel prices today would be double without the government subsidy.
Importers cannot compete with Petrobras.
What the Brazilian government did was help Petrobras, which produces a lot, can sell cheaply and is compensated with part of the export tax on what it exports.