Energy / WORLD

Brazil extends gasoline and ethanol tax relief, adds diesel subsidy

The temporary package extends federal tax relief on gasoline and ethanol and proposes extra support for imported diesel.

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Brazil’s Finance Ministry announced on 9 October that federal taxes on gasoline would remain zero for another month and that tax relief on ethanol sales would also continue. It put the gasoline A tax reduction at 0.89 reais per litre and the equivalent PIS/Pasep and Cofins relief on ethanol at 0.19 reais per litre.

The government also said it planned to add 1.40 reais per litre to the existing 2.12-reais subsidy for imported road diesel, through an order expected on 13 October. The ministry estimated the 2026 fiscal impact of gasoline and ethanol measures at 3.6 billion reais and the added diesel subsidy at 1.6 billion reais for 30 days. These are temporary policy measures and estimates; they do not guarantee an equal fall in pump prices.

Data

Key figures

Estimated fiscal cost of fuel-tax policy

2026 amounts and planned diesel-support estimate announced by the Finance Ministry on 9 October.

Estimated cost of gasoline and ethanol measures, 2026
3.6 billion BRL
2026 · Estimate
Estimated 30-day cost of planned imported-diesel support
1.6 billion BRL
2026-10 · Estimate
Methodology

All figures are estimated fiscal costs in billion BRL. Diesel support is a planned 30-day measure dependent on an order expected on 13 October, not realized spending. Gasoline and ethanol cost is the estimate for calendar 2026. Exact per-litre tax relief and subsidy amounts remain in the seven-language article text.

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