Overview
- President Luiz Inácio Lula da Silva said on Friday, May 22, 2026, that he fights “every single day” to lower fuel prices and has held repeated meetings with ministers and Petrobras leadership to press for cuts.
- The federal government has already zeroed PIS/Cofins on diesel, created temporary fuel subsidies, and imposed a 12% tax on oil exports with revenue earmarked to compensate truckers, taxi drivers and app drivers.
- Lula accused some distributors of failing to pass on price reductions to consumers and called for tougher inspections by the Agência Nacional do Petróleo and the Federal Police to investigate alleged abusive increases.
- Structural limits persist because Brazil still imports about 30% of its diesel, biodiesel feedstock prices are high despite mandatory blending, and the privatization of BR Distribuidora (now Vibra Energia) reduced direct state tools to manage supply.
- What to watch next: whether enforcement actions and talks with governors on ICMS state taxes quickly translate into lower pump prices for drivers and lower costs for freight and public transport users.