Government Ends Extra R$ 1.40 Subsidy for Imported Diesel

The Ministry of Finance confirmed that the additional aid of R$ 1.40 per unit of volume for imported diesel will not be renewed. The benefit expired on November 12 after a one-month term. The ministry points to the fact that the decision may be reviewed in the future depending on the behavior of global oil prices.

The diesel support program has not been fully terminated. The subsidy of R$ 2.12 per liter applied to road fuel remains active for producers and importers. The government maintains this policy to mitigate the impact of international price fluctuations on the Brazilian domestic market.

The aid strategy was originally implemented to curb inflationary pressures resulting from conflicts in the Middle East. Imported diesel accounts for more than 25% of national consumption. The government seeks to balance the cost of these subsidies with the need to maintain a regular supply for the country.

The end of this specific portion of the subsidy helps reduce the monthly mismatch between federal revenues and expenses. The government projects that the increase in oil exports will help boost tax collection. Brent crude remains at high levels, which keeps the focus on public spending on fuels.