Politics · Brazil · 6 hrs ago
Brazil extends tax cuts and subsidy for gasoline and ethanol through Dec. 9
Brazil's federal government extended tax cuts on gasoline and ethanol for 30 days, through Dec.
9.
The extension was formalized in a decree signed by acting president Geraldo Alckmin and published on Nov.
9.
The cuts keep federal taxes on gasoline and ethanol at zero, while a 0.428-real-per-litre subsidy for ethanol continues for producers and cooperatives.
The government says the support is meant to keep ethanol competitive with fossil fuels.
It comes as higher global oil prices raise concerns about fuel costs, amid conflict in the Middle East.
Officials say the extension is intended to limit price increases at the pump and pressure on inflation.
The combined cost is estimated at 3.57 billion reais, which the government expects to offset with extra revenue linked to higher oil prices.
The government wants to reduce fuel support over time, but has not set out when it will end these measures.
Brazil’s federal government will extend tax relief on gasoline and ethanol for 30 days, through December 9.
The measure will keep federal taxes on both fuels at zero and continue an additional subsidy for ethanol producers.
The combined cost is estimated at R$3.57 billion.
The government expects to offset the cost with extraordinary revenue linked to higher oil prices.
- Who
- Brazil’s federal government, led by President Luiz Inácio Lula da Silva.
- What
- It will extend federal tax relief on gasoline and ethanol and an additional subsidy for ethanol producers for 30 days.
- When
- The extension is due to run through December 9, 2026.
- Where
- Brazil.
- Why
- The government says the ethanol subsidy helps maintain ethanol’s competitive advantage over gasoline. It also aims to limit abrupt fuel price increases.
This story does not have two clearly opposing sides.
The government announced the fuel tax relief.
The government said it would extend the relief and ethanol subsidy for 30 days.
The extension is due to expire.
- End date
- December 9, 2026
- Combined estimated cost
- R$3.57 billion
- Gasoline tax relief
- R$0.89 per liter
- Ethanol tax relief
- R$0.19 per liter
- Additional ethanol subsidy
- R$0.428 per liter