PT proposes external commission to oversee fuel prices

PT leaders are pushing measures in Congress to monitor fuel prices amid the Middle East war. They advocate for an external commission and do not rule out a CPI to probe cartels. They also seek to re-nationalize BR Distribuidora, privatized under the previous administration.

In response to debates on fuel prices intensified by the Middle East war, PT leaders are planning actions in Brazil's National Congress. A key initiative is the proposal to establish an external commission focused on monitoring the fuel market. This comes after President Lula mandated that gas stations notify consumers of diesel price cuts and eliminated PIS and Cofins taxes on the fuel.

PT lawmakers are also weighing the option of launching a CPI to investigate alleged cartels at fuel stations nationwide. Meanwhile, government allies are gathering signatures for the Parliamentary Front in Defense of Re-nationalizing BR Distribuidora, which requires at least 171 endorsements. The aim is to highlight the consequences of the company's privatization, now rebranded as Vibra Energia, conducted under the Bolsonaro administration, claiming it undermines energy security and national supply.

Furthermore, the leaders plan to file requests for public hearings in two Chamber of Deputies committees to consult experts and officials on the issue. These steps seek to heighten oversight of the sector, with no specific timelines mentioned for the proposals.

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Brazilian government officials, including President Lula, discuss diesel subsidy tweaks in a conference room amid charts of fuel price surges.
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Government discusses diesel subsidy adjustments after low initial adherence

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Brazil's ANP released on Thursday (2) a list of five companies that joined the first phase of the diesel subsidy program, excluding major distributors Vibra, Ipiranga, and Raízen. President Luiz Inácio Lula da Silva's government is discussing technical adjustments to attract them, as they handle half of private imports. The program aims to cushion the war in Iran's effects on fuel prices.

President Lula's government presented a bill to Congress on April 23, 2026, allowing PIS/Cofins cuts on gasoline, ethanol, diesel, and biodiesel using extraordinary oil revenues. The measure addresses a 61% rise in gasoline import costs driven by the war in Iran, per ANP data. Officials state the cuts will be partial and temporary, possibly for two months.

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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.

The National Industry Confederation filed a lawsuit in the Supreme Federal Court against the provisional measure signed by President Luiz Inácio Lula da Silva that eliminated the federal tax on international purchases up to US$ 50.

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President Luiz Inácio Lula da Silva confirmed on Thursday (30/4) that the ethanol blend in gasoline will rise from 30% to 32%. He also announced the biodiesel blend in diesel increasing from 15% to 16%. The official announcement is scheduled for next week.

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