The federal government is implementing a new package to stabilize fuel prices, combining tax relief for gasoline and ethanol with a subsidy for diesel.
The federal government announced a series of renewed measures on Wednesday (September 9, 2026) to control the surge in fuel prices across the country. The announcement comes amid growing volatility in the international market, with the Brent crude oil barrel once again above US$100, driven by geopolitical tensions. The main objective is to alleviate pressure on consumers and the production chain, ensuring greater predictability in supply.
The actions encompass both the reduction of federal taxes on some products and the maintenance of direct aid for others. The flexibility for such interventions was secured by a new legal framework, allowing the Executive Branch to react quickly to global fluctuations without destabilizing public finances. This strategy demonstrates the administration of President Luiz Inácio Lula da Silva‘s commitment to mitigating the impacts of the external energy crisis on the domestic economy.
New Rules for Gasoline and Ethanol
One of the main changes announced involves gasoline and ethanol.
A presidential decree established a reduction of R$0.63 per liter in the PIS/Pasep and Cofins rates applicable to gasoline. Simultaneously, federal contributions on hydrated ethanol were zeroed out, providing tax relief of R$0.19 per liter.
These measures, which will take effect starting Thursday (September 10), replace the old gasolinesubsidy model, seeking greater effectiveness and transparency in price adjustments for consumers.
The tax relief on gasoline represents a more substantial cut than the previous subsidy, exceeding it by 43%. The decision to zero out taxes on ethanol aligns with current legislation, which requires this parity when there is a significant reduction in gasoline taxation, aiming to protect the competitiveness of clean and sustainable energy in the country. This move underscores the importance of policies that not only control prices but also consider Brazil’s sustainable energy matrix.
Diesel Subsidy and Global Context
For road diesel, the federal government opted to maintain the direct subsidy model.
A Provisional Measure (MP) was issued to authorize the payment of R$1.00 per liter to producers and importers, a value that exceeds the current federal tax burden on the fuel.
The continuation of this aid reflects concern for the stability of the transportation sector, essential for the economy, and Brazil’s vulnerability to rising international refining costs, given that over a quarter of the diesel consumed is imported.
The justification for maintaining and expanding these measures lies in the persistent rise of oil in the global market. Intensified conflicts in the Middle East have generated uncertainty and increased the risk of disruptions in oil production and transport, directly impacting the oil price and, consequently, its derivatives. The initial value of R$1.00 per liter for diesel, while substantial, may be adjusted by the Ministry of Finance based on the evolution of the international situation.
Legal Framework and Fiscal Implications
The new interventions were made possible by Complementary Law 235 of 2026, also known as the Fuel PLP.
This innovative legislation allows the Executive Branch to offset revenue losses resulting from tax reductions on fuels with extraordinary revenues generated by the oil shock itself.
This compensation can come from surplus oil royalties, special participations, and dividends from companies in the sector, providing unprecedented fiscal management agility for crisis scenarios.
Historically, the Fiscal Responsibility Law (LRF) imposed strict requirements for tax exemptions, demanding permanent compensation or demonstration that fiscal targets would not be affected.
The new law offers an exceptional mechanism that aligns with the reality of abrupt fluctuations in the global energy market.
Additionally, the government maintained the 12% tax on oil exports until November, a measure that, despite being controversial among producers, aims to raise funds to cover subsidies and tax reliefs.
The Ministry of Finance, in conjunction with the ANP (National Agency of Petroleum, Natural Gas and Biofuels), will be responsible for monitoring and managing the implementation of these actions.
Outlook and Future Impact
The measures recently announced by the federal government aim to offer relief to the Brazilian economy and consumers in the face of the complex dynamics of the global energy market. By combining tax relief and subsidies, the government demonstrates a multifaceted approach to managing fuel prices.
The long-term effectiveness will depend not only on the careful execution of these policies but also on the evolution of conflicts in the Middle East and the stability of the oil market. The commitment to transparency and the adaptability of the Ministry of Finance and the ANP will be crucial to ensure that benefits reach the end consumers, as Brazil navigates an increasingly challenging global energy landscape.
