The subsidy for gasoline will be R$ 0.44 per liter, as a way to reduce the impacts of the international oil price increase caused by the war in Iran. The announcement was made this Friday (22) by the Minister of Planning and Budget, Bruno Moretti, according to a note from "Agência Brasil". According to the minister, the value corresponds to about half of the federal taxes levied on the fuel and was defined cautiously to avoid a greater impact on public accounts. The measure will still be presented to President Luiz Inácio Lula da Silva next Monday (25). When announcing the decision last week, the economic team had informed that the subsidy would be between R$ 0.40 and R$ 0.45 per liter. In the case of diesel, the subsidy of R$ 0.3515 will come into effect in June, when the reduction to zero of federal taxes ends.
Defined value
The subsidy will serve as temporary compensation to reduce the price of gasoline for the end consumer. Initially, the government was considering a benefit of up to R$ 0.89 per liter, equivalent to the total federal taxes levied on the fuel. However, the economic team opted for a lower amount. “Given our caution, including from a fiscal standpoint, considering how much the price of gasoline has varied, given the price before the war, we thought it best to stay around half of that limit,” stated Moretti, in a press conference to explain the additional R$ 22.1 billion freeze in the 2026 Budget. The minister added that the impact of the war was stronger on diesel than on gasoline, which allowed for a smaller compensation in this case. “[A total of] R$ 0.44 is currently the most appropriate value per liter for the subsidy and should be sufficient to cushion the price shock in gasoline,” he said.
Cost of measurement
The government estimates that the measure will cost approximately R$ 1.2 billion per month. Since the initial planned duration is two months, the total estimated impact reaches R$ 2.4 billion. According to Moretti, the expenditure has not yet been officially incorporated into the budget projections because the regulatory decree is still being finalized by the federal government. After presidential approval, the subsidy will be implemented through an act of the Ministry of Finance.
Temporary term
The aid will initially be valid for two months and will then be reassessed by the economic team. The government intends to follow a model similar to that adopted for the diesel subsidy, created in March to contain the effects of the surge in oil prices on the international market. According to Moretti, the continuation or not of the diesel subsidy is still under discussion within the government.
War puts pressure
The escalation of the conflict in the Middle East has driven up international oil prices in recent weeks, increasing fuel costs in several countries. Since Brazil still partially depends on imports of refined products, international fluctuations end up putting pressure on domestic gasoline and diesel prices. The government's strategy is to use public resources to temporarily mitigate some of this impact while the international market remains unstable.
Auction postponed
During the press conference, Moretti also announced that the government has decided not to hold the auction of uncontracted pre-salt areas owned by the Union this year. The initial expectation was to raise approximately R$ 31 billion from the auction in 2026, but this forecast has been removed from the public accounts. "For this fiscal year, in the midst of a war, amidst price fluctuations, it was not the best decision to implement an auction of these areas," the minister stated.
Oil revenues
According to the government, the loss of revenue from postponing the auction will be partially offset by increased royalties and oil sales from Pré-Sal Petróleo SA (PPSA). With the rise in the international price of oil amid the war in Iran, revenue linked to oil exploration has grown significantly in recent weeks.
This text was translated by machine from Brazilian Portuguese.