Business · Energy & Commodities · 3 hrs ago
Brazil lets extra diesel subsidy expire but may review it later
Brazil’s Finance Ministry let an extra diesel subsidy expire on Friday and said it would not renew it.
The measure added R$1.40 per litre for imported diesel and was introduced in October as fuel prices rose amid the war in the Middle East.
The government said it could reconsider the support if oil prices change.
A separate subsidy of R$2.12 per litre remains in force until November 26, so the extra payment’s end does not remove all support.
The additional measure was intended to help maintain domestic supplies without causing sharp price changes and was estimated to cost R$1.6 billion.
A proposed fiscal bill would allow the government to exclude up to R$10.5 billion in diesel subsidies from its 2026 budget target, but Congress must approve it.
Critics say excluding the spending would not remove its effect on public debt, which reached 82.9% of GDP in September.
Brazil’s Finance Ministry said an extra subsidy of R$1.40 per litre for imported diesel expired on November 13 and would not be renewed.
The ministry said it could review the subsidy later depending on oil prices.
A separate subsidy of R$2.12 per litre for diesel sold in Brazil remains in force.
The extra subsidy was introduced for 30 days from October 13.
The government has continued other fuel tax cuts and subsidies, which it estimates will cost R$3.57 billion combined.
- Who
- Brazil’s Finance Ministry announced the decision.
- What
- The extra R$1.40-per-litre subsidy for imported diesel expired and will not be renewed for now.
- When
- November 13, 2026.
- Where
- Brazil.
- Why
- The ministry said future reviews could depend on changes in oil prices.
This story does not have two clearly opposing sides.
The government announced the extra diesel subsidy as part of a package responding to fuel prices.
The measure was formalized and took effect for 30 days.
The Finance Ministry said the extra subsidy had expired and would not be renewed.
- Extra imported-diesel subsidy
- R$1.40 per litre
- Duration
- 30 days from October 13
- Continuing diesel subsidy
- R$2.12 per litre
- Combined estimated impact of other fuel measures
- R$3.57 billion
- Government review condition
- Evolution of oil prices
2 sources
What people are saying
The ordinance on the R$1.40 subsidy for imported diesel has expired and will not be renewed, without prejudice to future reviews as necessary based on the evolution of oil prices