The government of Luiz Inácio Lula da Silva announced on Wednesday a change in fuel policy. Starting Thursday, the government will stop collecting federal taxes on gasoline instead of paying a benefit of R$ 0.44 per liter to companies in the sector. The measure replaces the previous subsidy, whose Provisional Measure 1358/2026 was set to expire today.
The change was made possible by the approval of a bill that allows the government to use the extra revenue obtained from higher oil prices to exempt fuels from taxes without having to compensate with increases in other taxes, as required by the Fiscal Responsibility Law. The rule applies only for this year.
The tax break comes at a time when oil prices are again exceeding US$ 100 per barrel for the first time since late July, amid an intensification of the conflict in the Middle East. The exact size of the tax cut was still being finalized by government technicians at the time of publication.
