Brazil Extends Fuel Price Controls as Global Oil Markets Remain Volatile
The measures, approved by President Luiz Inácio Lula da Silva, will remain in effect until July 31, according to official statements.
Authorities said the decision continues a policy response introduced to cushion the domestic economy from volatility in global energy prices linked to tensions in the Middle East.
The package includes a subsidy of 1.12 reais per liter of diesel for refiners and importers operating in the domestic market, fully funded through federal resources. Officials also introduced a compensation mechanism for diesel producers and importers, replacing a temporary federal tax exemption that recently expired.
Brazil’s Mines and Energy Minister Alexandre Silveira said the government aims to shield consumers from the effects of external shocks on fuel costs.
“We are being proactive and providing effective responses that will help contain fuel prices and ensure supply in Brazil,” he said, according to reports.
Planning and Budget Minister Bruno Moretti added that authorities will continue monitoring global conditions and adjust policies if uncertainty in energy markets persists.
Officials indicated that the emergency framework could be reassessed again at the end of July, depending on developments in international oil prices.
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