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Brazil Extends Fuel Subsidies Through July

Brazil extends fuel subsidies through July 31, including diesel, LPG, and aviation fuel support, amid global oil market volatility.

Mia Lopez
ByMia Lopez- Senior Editor
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0

Brazil's government has extended fuel price relief measures for two more months, keeping subsidies and tax breaks in place through July 31.

The extension aims to shield consumers from higher energy costs amid global oil market volatility due to the Middle East conflict.

Emergency measures originally set to expire on May 31 will now continue until end of July.

For diesel, a subsidy of 1.12 reais per liter will be maintained for domestic refiners and importers from June 1.

Two subsidy programs introduced in April will be merged into a single mechanism for price stability.

The Finance Ministry announced a separate subsidy for diesel producers and importers to offset tax costs, replacing a previous tax exemption.

Support for liquefied petroleum gas (LPG) was extended, with federal funding doubled to 660 million reais.

The subsidy will provide 11 reais per 13-kg cooking gas cylinder sold.

Exemptions from PIS and Cofins taxes on aviation kerosene and biodiesel were also extended through July 31.

Planning Minister Bruno Moretti noted that fuel prices have started to decline but continued government action remains necessary.

The fiscal cost of the extension was not updated; in April, it was estimated at about 10 billion reais.

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Brazil Extends Fuel Subsidies Through July | Bond.az