The government published this Tuesday (April 7, 2026) the provisional measure and decrees with the new rules to contain the increases in the prices of diesel, gas and aviation kerosene caused by the war in Iran. The package includes subsidies for companies that import diesel and for national producers, QAV (Aviation Kerosene) and biodiesel.
The MP and the decrees were published in an extra edition of the Official Gazette of the Union. Read (PDF – 221kB).
Since the beginning of the conflict initiated by the United States and Israel against Iran, the price of oil on the international market has soared due to the closure of the Strait of Hormuz, in the Middle East, which drains around 20% of the world’s production of the product. The North American and Iranian governments reached an agreement this Tuesday to reopen the strait for two weeks. During this period, the countries will negotiate a permanent truce.
The new rules come into force immediately and are valid until May 31, with the possibility of being extended for another 2 months. The MP must be analyzed by Congress within a maximum period of 120 days. The package was announced by the economic team on Monday (April 6).
According to the government, the measures will reach public accounts in 2026. However, the Executive claims that the fiscal impact will be neutral due to the increase in extraordinary revenue from oil royalties.
Here is a summary of the measures:
- subsidies for national diesel producers: R$ 6 billion (duration of 2 months, extendable for 2 months);
- subsidy for diesel importing companies: R$ 2 billion (duration of 2 months, extendable for 2 months), there is a cost of R$ 2 billion to the States that did not enter the Union account;
- initial subsidy of R$0.32 per liter for imports: R$2 billion;
- LPG subsidy and tax withdrawals from QAV and biodiesel: R$500 million;
- reset diesel PIS/Cofins rates: R$20 billion in annualized values. The economic team states that the collection of the tax should return later, still in 2026, which would reduce the tax waiver.
The Lula government created two subsidies for diesel oil that complement the cost allowance of R$0.32 per liter published in , published on March 12th. The provisional measure announced this Monday (April 6, 2026) provides an additional subsidy of R$1.20 per liter of fuel, the amount of which will be paid by the States (R$0.60) and the Union (R$0.60). The cost of this specific measure is R$4 billion, half of which goes to the Lula government (R$2 billion) and the rest to other entities.
According to the Minister of Finance, Dario Durigan, only 2 States did not join. He said the fuel in these locations. The measure is valid for 2 months, extendable for another 2 months.
The government will also provide a reduction of R$0.80 per liter for diesel produced in Brazil. The government reserved up to R$10 billion for the measure, but the Minister of Planning stated that the effective cost will be R$6 billion.
The provisional measure also punishes business owners who do not pass on the price drop. The Minister of Mines and Energy, Alexandre Silveira, said that an urgent bill will expand the powers of the ANP (National Agency for Petroleum, Natural Gas and Biofuels).
Silveira said they are “coercive measures” against those who will “pay attention” against the popular economy. Businesspeople who go “breaking the laws” of the popular economy will be punished by the CPF. A “blatant” irregularity.
He stated that the government has viewed this practice in a “reiterated” in the actions of the Federal Police, Cade (Administrative Council for Economic Defense) and ANP.
“Now [a ANP] is even strengthened. Now not only the agent has his CNPJ, but also those businesspeople who break the laws of the popular economy have their CPF. They will also be punished by the CPF in relation to price abuse in Brazil”, he said.
Companies should adopt mechanisms to smooth prices, according to the Minister of Planning and Budget, Bruno Moretti. He declared that he is not “reasonable” that the tax payer’s subsidy money does not result in cheaper diesel prices.
