Business · Energy & Commodities · 3 hrs ago
Brazil extends diesel subsidy of R$2.12 per litre for 30 days
Brazil's government extended its diesel subsidy for 30 days, preventing it from ending this week.
The payment keeps support at R$2.12 per litre.
The government says it is responding to volatile international oil and fuel prices, with Brent crude above US$100 a barrel amid conflicts in the Middle East.
More than 25% of the diesel used in Brazil is imported, so changes in global prices can affect the domestic market.
The extension is expected to cost R$10.5 billion and will be offset by extraordinary revenue from oil.
The government said a formal order setting out the extension would be published on Tuesday.
Brazil’s government extended the diesel subsidy of R$2.12 per litre for another 30 days.
The extension was announced on October 27, and without it the benefit would have ended that week.
The government cited volatility in international oil and fuel prices, with Brent crude above US$100 a barrel amid conflicts in the Middle East.
More than 25% of the diesel consumed in Brazil is imported.
CNN Brasil reported that the extension would cost R$10.5 billion and be offset by extraordinary oil revenues.
- Who
- Brazil’s federal government, through the Ministry of Planning and Budget.
- What
- It extended the diesel subsidy of R$2.12 per litre for 30 days.
- When
- Announced on October 27, 2026.
- Where
- Brazil.
- Why
- The government cited volatility in international oil and fuel prices. More than 25% of Brazil’s diesel consumption is imported.
This story does not have two clearly opposing sides.
Provisional Measure 1.363 established a diesel subsidy of R$1.12 per litre.
Provisional Measure 1.391 authorized the Ministry of Finance to set the subsidy amount.
Provisional Measure 1.363 lost validity, and a government order ensured the R$2.12 subsidy continued for October.
The government announced a further 30-day extension of the R$2.12-per-litre subsidy.
- Subsidy rate
- R$2.12 per litre
- Extension
- 30 days
- Announcement date
- October 27, 2026
- Reported cost
- R$10.5 billion
- Oil-revenue estimate
- R$67.5 billion in 2026