Brazil has extended fuel-price relief for another month, cutting federal taxes on gasoline by BRL 0.89 per litre and extending ethanol tax reductions and diesel subsidies to ease fuel costs for consumers.
Brazil’s government announced on 9 October 2026 that it is extending fuel-price relief measures for another month. President Luiz Inácio Lula da Silva’s administration rolled out the package to reduce cost-of-living pressure as voters prepare for the month’s presidential runoff election.
Tax cuts on gasoline take effect immediately
The new gasoline decree reduces the federal tax burden by BRL 0.89 per litre across PIS/COFINS and CIDE taxes. This reduction effectively eliminates federal taxation on gasoline. The measure replaces the previous package, which expired on 9 October 2026.
Finance Minister Dario Durigan stated at a press conference that the relief program is not tied to the election campaign. He noted that fuel support measures have been announced regularly since the start of the US-Israeli war against Iran.
Ethanol and diesel get subsidies too
Earlier, the government extended the PIS/PASEP and Cofins tax reduction on ethanol at BRL 0.19 per litre. Road diesel importers receive an additional subsidy of BRL 1.40 per litre for 30 days, layered on top of the existing BRL 2.12 per litre support.
The gasoline and ethanol measures are projected to cost BRL 3.6 billion across 2026. The added diesel subsidy is expected to cost BRL 1.6 billion over the 30 days.
Planning and Budget Minister Bruno Moretti said the government expects these reductions to pass through to consumers at the pump, bringing fuel prices down.
