The government is expected to sign the diesel subsidy agreement this week.

The federal government is expected to publish a provisional measure this week to subsidize imported diesel, in an attempt to mitigate the impact of the war in the Middle East on fuel prices in Brazil, as reported by various media outlets on Monday (6). The proposal provides for a subsidy of R$ 1.20 per liter and will initially be valid for two months. According to the Ministry of Finance, the cost of the measure will be shared between the Union and state governments, with an estimated impact of around R$ 1.5 billion per month. The initiative comes amid pressure from the distribution sector, which points to a gap between domestic prices and international diesel prices, in the context of the war in the Middle East.

This text was translated by machine from Brazilian Portuguese.