Brazil’s federal government announced fuel-tax measures on September 9 amid volatile international oil prices and supply constraints linked to geopolitical conflicts. PIS/Pasep and Cofins taxes on gasoline imports and domestic sales were cut by 0.63 reais per litre. The two contributions on hydrated ethanol were set to zero, a tax reduction of 0.19 reais per litre. The changes run through October 9 and exclude aviation gasoline.

The gasoline tax change replaces an expiring subsidy of 0.44 reais per litre and reduces the federal PIS/Pasep and Cofins burden to 0.16 reais per litre. A provisional measure also authorizes economic support for producers and importers of road diesel while supply instability persists. The Finance Ministry will set the per-litre subsidy amount, which may be adjusted, suspended or extended depending on market conditions.