Brazil has extended subsidies for petroleum-derived fuels through Provisional Measure No. 1,395/2026, allocating BRL 7.52 billion in extraordinary budget funding. The funds include BRL 1.35 billion for petroleum-derived fuels and BRL 6.17 billion for road diesel subsidies. The measure took effect on 9 October 2026.
Brazil’s federal government has published Provisional Measure No. 1,395/2026 in the Official Gazette on 9 October 2026, extending fuel subsidy measures introduced earlier this year to contain rising gasoline and diesel prices amid geopolitical tensions in the Middle East.
The extension provides an extraordinary credit of BRL 7.52 billion in the 2026 Budget to support the production and import of petroleum-derived fuels. These newly released financial resources are specifically designated for the National Agency of Petroleum, Natural Gas and Biofuels (ANP) to manage targeted national programs.
Budgetary allocation breakdown
The official schedule in MP 1,395/2026 divides the total R$ 7.52 billion extraordinary credit between two specific subsidy mechanisms:
| Program Action | Description | Related Legislation | Amount (BRL) |
| 0909 00YN | Economic Subsidy for the Production and Importation of Petroleum-Derived Fuels | Provisional Measure No. 1,358 of 2026 | 1.35 billion |
| 0909 00YO | Economic Subsidy for the Production and Importation of Diesel Oil for Road Use | Provisional Measure No. 1,363 of 2026 | 6.17 billion |
| Total | Extraordinary Fiscal Credit (Fiscal Budget) | — | 7.52 billion |
The measure took effect on its publication date, 9 October 2026, but still requires approval by Congress to become permanent law.
