Initially, the government was studying a benefit of up to R$0.89 per liter; as the initial duration will be 2 months, the total expected impact of the measure will be R$2.4 billion
The subsidy for gasoline will be R$0.44 per liter, as a way of reducing the impacts of the international oil price rise caused by the war in Iran. The announcement was made on Friday (May 22, 2026) by the Minister of Planning and Budget, .
According to the minister, the value corresponds to around half of the federal taxes levied on fuel and was defined with caution to avoid a greater impact on public accounts. The measure will still be presented to the president (PT) on Monday (May 25).
When announcing the decision last week, the economic team had informed that the subsidy would be between R$0.40 and R$0.45 per liter.
In the case of diesel, the subsidy of R$0.3515 will come into force in June, when the zero reduction of federal taxes will end.
DEFINED VALUE
The subsidy will act as a temporary compensation to reduce the price of gasoline for the end consumer. Initially, the government was studying a benefit of up to R$0.89 per liter, equivalent to the total federal taxes charged on fuel. The economic team, however, opted for a lower value.
“Given our caution, including from a fiscal point of view, looking at how much the price of gasoline has changed, considering the price before the war, we think it is best to stay around half of this limit”Moretti told journalists, explaining the 2026 Budget.
The minister added that the impact of the war was stronger on diesel than on gasoline, which allowed for lower compensation in this case.
“[Um total de] R$0.44 is currently the most appropriate value per liter for the subsidy and should be enough to cushion the price shock on gasoline”these.
MEASUREMENT COST
The government estimates that the measure will cost around R$1.2 billion per month. As the initial expected duration is 2 months, the total estimated impact reaches R$2.4 billion.
According to Moretti, the expenditure has not yet been officially incorporated into the Budget projections because the regulatory decree is still being finalized by the federal government.
After presidential approval, the subsidy will be implemented through an act from the Ministry of Finance.
TEMPORARY TERM
The aid will initially be valid for 2 months and will then be reevaluated by the economic team.
The government intends to follow a model similar to that adopted in the diesel subsidy, created in March to contain the effects of the rise in oil prices on the international market.
According to Moretti, whether or not to continue the diesel subsidy is still under discussion within the government.
PRESSURE WAR
The escalation of the conflict in the Middle East has raised international oil prices in recent weeks, increasing fuel costs in several countries.
As Brazil still partially depends on imports of derivatives, international fluctuations end up putting pressure on domestic prices of gasoline and diesel.
The government’s strategy is to use public resources to temporarily reduce part of this impact while the international market remains unstable.
AUCTION POSTPONED
Moretti also announced that the government decided not to hold this year the auction of Union areas in the pre-salt that have not yet been contracted.
The initial expectation was to raise around R$31 billion with the event in 2026, but the forecast was removed from public accounts.
“For this exercise, in the midst of a war, in the midst of price fluctuations, it was not the best decision to put in place an auction of these areas”stated the minister.
OIL REVENUES
According to the government, the loss of revenue due to the postponement of the auction will be partially offset by the increase in revenue from royalties and the sale of oil from Pré-Sal Petróleo SA
With the rise in the international price of a barrel amid the war in Iran, revenue linked to oil exploration has grown significantly in recent weeks.
This text was originally published by Agência Brasil, on May 22, 2026. The content is free for republication, citing the source, and was adapted to the standard of Poder360.
