Brazil Fuel Subsidy Bill Reaches US$6.2 Billion, Treasury Says Revenue Covers It
Brazil fuel subsidy and tax relief cost US$6.2 billion to the end of August, and the Treasury says this year’s energy windfall more than covers it. The post Brazil Fuel Subsidy Bill Reaches US$6.2 Billion, Treasury Says Revenue Covers It appeared first on The Rio Times .
Brazil's fuel subsidy bill for 2026 totals R$32.4 billion (around US$6.2 billion), according to the National Treasury. This amount is less than the projected revenue from higher energy prices, which is R$67.5 billion (approximately US$12.9 billion) for the same year. The Treasury's secretary, Daniel Leal, stated that the additional energy revenue covers the fuel subsidies and tax breaks.
The figures were published five days before Brazil's general election on 4 October 2026. The revenue projection for 2026 is based on the current energy price outlook, while the cost side of the equation only covers fuel measures up to the end of August and leaves out September, which has seen the most expensive month so far. Brazil's fuel subsidy measures include a tax cut on gasoline, a direct payment to producers and importers for road diesel, and a Petrobras adjustment to offset international price swings.
The tax cut on gasoline lowers federal duty by R$0.63 per litre (about US$0.12), while the state provides R$2.12 for every litre of road diesel. The revenue from these measures, especially from energy taxes, is expected to be sufficient to cover the fuel subsidy bill.
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