Lula Administration Extends Diesel Subsidy by R$2.12 Per Liter for 30 Days
New ordinance from the Ministry of Finance maintains the full subsidy amount starting Sunday, when a R$1.12 portion would expire.
TL;DR
- The Ministry of Finance extended the diesel subsidy by 2.12 cents per liter for 30 days.
- The extension is effective from Sunday, when a previous subsidy portion was set to expire.
- The decision was made due to persistent volatility in international oil and fuel prices, linked to the war in Iran.
- The subsidy consists of two parts: 1.12 cents from a previous provisional measure and 1 real added in September.
- The government also previously announced tax exemptions on gasoline and ethanol.
- These fuel benefit measures are costing the Union R$7 billion per month.