The Brazilian federal government has extended for 30 more days its waiver of federal taxes on gasoline and ethanol. The measure was published in an extra edition of the Diário Oficial da União. Fuel prices are the target. The government says the steps are meant to blunt the impact of higher oil prices tied to conflicts in the Middle East.
What the extension covers
The total cut in federal taxes on gasoline stands at 0.89 reais per liter. That figure includes a previous reduction of 0.63 reais per liter, which has since been expanded. The gasoline measure costs 2.4 billion reais per month, an increase of 0.7 billion reais.
Ethanol gets its own treatment. The waiver on hydrated ethanol is 0.19 reais per liter. The government also maintained an economic subsidy to producers and cooperatives, raising it from 0.25 reais to 0.43 reais per liter.
Diesel and the electoral backdrop
A separate, additional subsidy of 1.40 reais per liter goes to diesel importers. It sits on top of the 2.12 reais per liter already in force and runs for 30 days. The estimated cost is 1.6 billion reais.
The measures were announced 16 days before the second round of elections, on 9 October. Finance Minister Dario Durigan said the decisions had no relation to the presidential dispute.
Fiscal cost and timeline
The estimated combined fiscal impact of the gasoline and ethanol measures is 3.6 billion reais for 2026. All measures remain in force until 9 December.
Related: Indonesia moves to route oil and fuel imports through state agency Lemigas · Russia extends diesel and fuel export ban to January 2027
Source: Diário Oficial da União
