Overview
- The federal government issued Medida Provisória 1.363 that establishes a unified diesel subvention of R$1.12 per liter effective June 1 and set to run through December 31, 2026, subject to periodic review and Congressional approval.
- A Ministry of Finance portaria creates a two-month transfer worth R$351.50 per cubic meter (R$0.3515 per liter) for diesel producers and importers starting June 1, and Petrobras applied an equivalent R$0.35 per liter reduction to its sale price to distributors on Monday, June 1.
- A presidential decree extended PIS/Pasep and Cofins reductions on aviation kerosene and biodiesel until July 31, 2026, preserving near-zero federal levies for those fuels to ease costs for airlines and fuel blenders.
- Companies must enroll in the programs, prove they passed subsidies into sale prices and flag discounts on invoices, with the ANP charged to audit claims and make payments to eligible producers and importers.
- The government estimates the package will cost about R$30.5 billion and says it will be offset by other revenue sources such as diesel taxation and royalties, while the measures were adopted by executive action because Congress has not finalized enabling legislation.