The government announced a new set of measures to curb rising fuel prices, an MP should establish a subsidy of R$850 per ton of imported LPG, and a decree was issued to eliminate PIS/Cofins taxes on aviation fuel

BRAZIL POLITICS - Report 07 Apr 2026 by Murillo de Aragão and Cristiano Noronha

The federal government announced yesterday a new set of measures to curb rising fuel prices driven by the war in Iran. The main initiative is the establishment of a diesel subsidy, applicable to both imported fuel and domestically produced output. To mitigate the impact on vulnerable households, the government also detailed a provisional measure (MP) establishing a subsidy of R$850 per ton of imported LPG. With total funding of R$330 million, the initiative aims to align the price of imported LPG with domestic levels, reducing price volatility for households that rely on LPG as a primary energy source. A decree was also issued to eliminate PIS/Cofins taxes on aviation fuel (QAV), generating an estimated direct cost reduction of R$0.07 per liter. In addition, the government authorized the deferral of air navigation fees owed to the Brazilian Air Force.

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