The Brazilian government announced on Monday (6) extra subsidies for diesel and cooking gas, plus zeroing PIS/Cofins on biodiesel and aviation kerosene. The measures aim to curb the war in Iran's impact on fuel prices. The total estimated cost is R$ 31 billion, offset by an oil export tax.
President Luiz Inácio Lula da Silva's government raised the diesel subsidy for national production by R$ 0.80 per liter to R$ 1.12 total, and for imports by R$ 1.20 to R$ 1.52. The initial duration is two months, extendable by another two, costing around R$ 10 billion. "The fiscal target is maintained," said Finance Minister Dario Durigan, noting offsets from the oil export tax.
Imported cooking gas (GLP) will receive R$ 850 per ton, about R$ 11 per 13 kg cylinder, costing R$ 330 million over two months. For aviation, zeroing PIS/Cofins on kerosene (QAV) cuts R$ 0.07 per liter, with credit lines of R$ 1 billion for working capital and R$ 7.5 billion for restructuring via BNDES.
The measures come via provisional measure and decrees, plus a bill to criminalize abusive price hikes with two-to-five-year prison terms. Planning Minister Bruno Moretti stressed distributor adherence, while Mines and Energy Minister Alexandre Silveira announced expanded ANP powers to shut abusive stations.
Distributors like Vibra, Ipiranga, and Raízen have not fully joined the initial subsidy, but the government anticipates better participation under new rules.
