The government ended the R$ 0.35 per liter diesel subsidy on Wednesday. Hours earlier, Petrobras announced a matching cut to keep refinery prices stable.
The government measure was announced by Finance Minister Dario Durigan and takes effect from July 1. The subsidy had been in place since March 12, when the conflict between the United States, Israel and Iran drove up oil prices.
Petrobras said the average selling price of diesel at its refineries remains at R$ 3.30 per liter. The decision was taken amid falling international prices, with Brent crude around US$ 73.
Planning Minister Bruno Moretti said ending the subsidy reinforces the commitment to the 2026 fiscal target. The government is studying the removal of other still-active aids, including a second diesel subsidy.
