President Luiz Inácio Lula da Silva announced on Wednesday (the 9th), less than a month before the elections, a decree that expands the gasoline subsidy from R$ 0.44 to R$ 0.63 per liter. There will also be a reduction of R$ 0.19 per liter of ethanol. The government also signed a provisional measure to grant a new subsidy of R$ 1 per liter of diesel, totaling R$ 2.12 per liter when the two PMs coexist.
The gasoline subsidy was ending on Wednesday. In its place, the government applied a tax break that will be even greater than the direct payments to producers and importers, as was the model previously adopted. Today, a subsidy of R$ 1.12 for diesel is already in effect, valid until September 26th.
The tax break occurs at a time when the oil barrel price is again surpassing US$ 100 for the first time since the end of July, amid an intensification of the conflict in the Middle East.
