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Government launches diesel subsidy via Provisional Measure 1.391 to ensure national supply

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The Federal Government has formalized, through Provisional Measure No. 1.391, a new diesel subsidy strategy aimed at ensuring the stability of the national supply in the face of geopolitical challenges.

In response to international market volatility and the risks of supply shortages, the federal administration published Provisional Measure No. 1.391 last Friday (11). The legal framework creates the necessary structure to provide financial assistance to agents operating in the production and import chain of road diesel, ensuring that the distribution flow is not interrupted across the country.

Although the measure is already in effect, the specific subsidy amounts still depend on technical definitions from the Ministry of Finance. The main objective is to shield Brazilian logistics from the negative impacts of global tensions that have pressured fuel supply in various regions around the world.

Structure and operationalization of the measure

The operationalization of the subsidy will fall directly under the ANP (National Agency of Petroleum, Natural Gas and Biofuels). The agency will be responsible for managing participant registration, calculating the amounts to be transferred to producers and importers, processing payments, and, crucially, exercising strict oversight over the prices charged by the beneficiary companies.

Regarding the justification for the initiative, the Provisional Measure (MP) clarifies that the measure is essential to mitigate the effects of external uncertainties.

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“The decision aims to ensure the continuous and stable supply of fuel throughout the Brazilian territory, given a scenario of increasing supply instability caused by geopolitical conflicts,” the official text highlights.

Deadlines and budgetary feasibility

The benefit will have an initial validity period of 30 days, starting from the regulations to be issued by the Ministry of Finance, with a legal provision for a one-time extension for an equivalent period, should market conditions still require intervention.

To make the program viable, the funds will come from the ANP itself, contingent upon the agency’s budgetary and financial availability. This move reinforces the government’s caution in seeking solutions that balance national energy security with the control of public spending, keeping the logistics sector operational during a time of global uncertainties that directly impact fuel prices.

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