Federal judge Humberto de Vasconcelos Sampaio of Rio de Janeiro's 1st Federal Court granted an injunction suspending the 12% export tax on crude oil. The ruling responds to a request from five oil companies producing 20% of Brazil's oil. The provisional measure creating the tax took effect on March 12.
The judge recognized the revenue-raising nature of Provisional Measure 1.340/2026, which introduced the tax to fund R$10 billion in diesel subsidies. Companies TotalEnergies, Repsol Sinopec, Petrogal, Shell, and Equinor argued it creates international competitive disadvantages and violates principles like legal security and prior notice.
In February, these firms produced 791,000 barrels of oil, nearly all exported, exceeding Petrobras' 2025 annual average. The injunction halts collection from the MP's start, preventing irreversible losses, per the judge.
At a Rio de Janeiro event on Wednesday (8th), company executives criticized fiscal instability. "For every three barrels produced in Brazil, two go to tax burden. In the US, just one," said Shell Brazil president Cristiano Pinto da Costa.
Equinor's Verônica Coelho noted: "Brazil is recognized for respecting contracts [...], but recent fiscal changes make new investment decisions harder."
Mines and Energy Minister Alexandre Silveira defended the tax, saying it transfers oil firms' extraordinary profits to Brazilian consumers. "Extraordinary times demand extraordinary measures," he stated.
