Brazil Extends R$0.44 Gasoline Subsidy for 30 Days

Overview

• The Ministry of Finance published Portaria 2.198/2026 to keep the gasoline subvention at R$0.44 per liter for 30 days, with the measure taking effect on July 26.
• Payments are made directly to refiners and importers through the National Agency of Petroleum (ANP), so the aid reduces wholesale pass‑through rather than imposing retail price controls.
• The larger diesel subvention of R$1.12 per liter remains in force after Congress extended the enabling provisional measure for 60 days, and the government has ruled out reinstating the extra R$0.35/l diesel top‑up for now.
• The extensions carry clear fiscal costs estimated at about R$1.2–1.3 billion per month for gasoline and R$5–5.5 billion per month for diesel, and officials say higher oil‑sector revenues partly offset those outlays.
• Ministers say the measures are temporary and will be re‑evaluated at short intervals based on Brent prices and domestic pump pass‑through, with complementary steps such as higher ethanol blending already adopted to reduce oil dependence.