Fazenda states that the transfer is essential so that the “negative effects” of tensions in the Middle East are not felt
The executive secretary of the Ministry of Finance, said this Thursday (March 12, 2026) that the federal government met with representatives of fuel distributors in Brazil to ask that the discounts announced as a way to contain the impact of the rise in are passed on and reach consumers.
The fear is that total exemption from R$ 0,64 per liter of ethanol is not perceived, in practice, by the population.
“We ask the distributors that all the gains offered by the government, all the impact with the exemption and subsidy, be immediately considered and passed on to the gas stations to prevent the population from feeling the negative effects of the war”he stated in an interview after the meeting.
The exemption was defined by the decreewhich reduces R$0.32 per liter of diesel, with an impact of R$20 billion and the MP (provisional measure) which creates a subsidy of over R$0.32 per liter for producers and importers, at a cost of R$10 billion for tax payers.
The government is trying to reduce the impact of the rise in oil prices due to the US and Israel war against Iran. The Treasury estimates that the impact will be R$30 billion by December 31, 2026. If there is no transfer, the measures will not have the expected impact.
Diesel is the most consumed fuel in the country and has a strong impact on the economy. It supplies trucks responsible for transporting goods and food, as well as part of public transport. Therefore, increases in the price of diesel usually put pressure on freight costs and can influence inflation.
PETROBRAS WILL NOT SUBJECT TO INTERVENTION
The Minister of Mines and Energy, (PSD), once again stated that the government will not interfere in the company’s pricing policy and respects the independence of the state-owned company.
“We will not intervene in a publicly traded company like Petrobras. The government has a majority stake in the councils, but the investment plan and management are respected. The company’s directors are extremely competent in deciding on pricing policy”, he said during an interview.
The price of oil brenta reference for the global market, fluctuated at the average of US$ 100 this Thursday (12th March). According tothe barrel can reach US$ 200 in case of blockade or threat of mines in the.
Oil prices on the foreign market usually impact the value of fuels in Brazil. Petrobras considers, among other factors, international oil prices and the exchange rate to define the sales prices of gasoline and diesel to distributors.
The state-owned company’s pricing policy is a sensitive topic for the federal government because fuels have a relevant weight in inflation and, as a consequence, in the government’s assessment.
Any adjustments may influence indicators such as the IPCA (Broad National Consumer Price Index), used as a reference for the country’s inflation target.
President Lula’s government has defended that the company maintains autonomy to define its commercial policy. The Union is the controlling shareholder of Petrobras and has a majority on the company’s board of directors.
