Brazil Extends R$2.12 Diesel Subsidy for Another 30 Days
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Brazil's Federal Government announced the renewal, for a further 30 days, of the R$2.12 per liter diesel subsidy. According to the Ministry of Planning and Budget, the measure will be funded through extraordinary oil revenues and will be published in the Diário Oficial da União (DOU).
The extension was announced this Tuesday, October 27, and, according to the ministry, will be valid for one month with an impact equivalent to that of the scheme in force until now. The ordinance formalizing the extension of the term was expected to be published that same day in a special edition of the DOU.
Background on the Subsidy
The subsidy had last been renewed on October 9, also for 30 days, remaining in effect until early November, at which point an additional subsidy of R$1.40 per liter had also been granted to importers of road-use diesel. The benefit was originally created by Provisional Measure 1.363, of May 30, 2026, which set a subsidy of R$1.12 per liter; in September, Provisional Measure 1.391 authorized the Ministry of Finance to add a further installment of R$1.00, bringing the total to R$2.12 per liter.
Context of the Decision
Without the renewal, the subsidy would have expired this week. The extension seeks to prevent a reduction in the value of the benefit and to sustain support for the fuel sector amid pressure from rising oil prices on the international market.
