Congress Extends Brazil's Fuel-Subsidy Emergency Measure for 60 Days

Overview

• Senate President Davi Alcolumbre signed and published the 60-day extension in the Diário Oficial da União, keeping Medida Provisória nº 1.358/2026 in force while Congress analyzes the text.
• The measure authorizes subsidies to producers and importers of petroleum-derived fuels and preserves the legal mechanism for the federal government to grant, reduce or restore subvenções to the sector.
• The extension follows the Constitution’s automatic-renewal rule for provisional measures that are not voted within their initial term, allowing the executive to retain emergency powers during legislative review.
• The government has already begun rolling back some support, ending the R$0.35 per liter diesel subvention, and says any further maintenance or cuts will depend on international oil quotations and the need to keep consumer prices stable.
• Because a medida provisória is temporary and must still be approved by Congress, the extension keeps a short-term policy tool open that can affect fuel costs, fiscal spending and transport prices for households and businesses as market conditions change.