Brazil Extends Gasoline and Ethanol Tax Relief to December 9 at a 30-Day Fiscal Cost of R$2.76 Billion
Brazil's federal government issued Decree No. 13,159 on November 9, extending federal tax relief on gasoline and ethanol for another 30 days, to December 9, 2026. The decree, signed by Acting President Geraldo Alckmin and published in an extra edition of the Diário Oficial da União, is meant to hold back inflationary pressure from rising international oil prices.
The extension follows on from the previous round. Relief under Decree No. 13,134 ran from September 10 to November 9, and the new arrangement continues it from November 10 to December 9. The Presidency said international oil prices have risen because of the conflict in the Middle East, and the government wants to soften the blow to fuel prices inside Brazil first.
The Ministry of Finance put numbers on the relief. For gasoline, the federal PIS/Pasep, Cofins and Cide rates on imports and domestic sales stay at zero. Measured against the rates in force in February 2026, before the Middle East conflict, that is a reduction of R$0.89 per litre of gasoline A, of which R$0.79 comes from PIS/Pasep and Cofins and R$0.10 from Cide. The relief does not cover aviation gasoline.
For ethanol, the PIS/Pasep and Cofins rates on sales of hydrous ethanol fuel also stay at zero, worth R$0.19 per litre. The government is likewise extending the ethanol subsidy of R$0.428 per litre for another 30 days. The subsidy is paid to producers and producers' cooperatives supplying biofuel for final consumption, runs from October 10 to December 9, and can be extended further by the Ministry of Finance. The ministry said the aim is to keep ethanol competitive against gasoline.
The cost has been calculated. The Ministry of Finance estimates the fiscal cost of the 30-day gasoline and ethanol relief at R$2.76 billion, to be offset by extraordinary revenues from the oil sector so that the measure stays fiscally neutral. Extending the ethanol subsidy carries a separate estimated cost of R$813.41 million. Both measures are temporary and form part of the government's response to tight conditions in the international fuel market.
(Source: Presidency of the Republic of Brazil)
Source: Presidency of the Republic of Brazil
Published by GSM · USA (original Chinese edition)
Photo: 图：位于巴西利亚的巴西总统府高原宫（Palácio do Planalto）。照片：Leandro Neumann Ciuffo，CC BY 2.0，经维基共享资源。 / Photo: The Palácio do Planalto, seat of the Presidency of Brazil, in Brasília. Photo by Leandro Neumann Ciuffo, CC BY 2.0, via Wikimedia Commons.
