Brazil’s federal government is poised to extend the gasoline subsidy by 30 days, pushing its expiration to September 9, according to two sources within the economic team. The tax break, valued at R$0.44 per liter, was previously extended on July 26 and is designed to mitigate fuel price volatility linked to Middle East oil market disruptions.
The subsidy’s legal framework is tied to a provisional measure that has yet to be reviewed by the National Congress. Without congressional ratification, the measure—and the subsidy—would lapse at the end of the current extension period. The government has relied on successive short-term extensions to maintain the policy since its initial implementation in response to geopolitical oil price shocks.
The latest move follows a pattern of temporary relief measures, with the current extension set to bridge the gap until mid-September. Analysts note the subsidy’s role in stabilizing domestic fuel prices, particularly as global crude markets remain sensitive to regional conflicts. The government has not issued an official statement regarding the extension as of the report’s publication.
