The measure is financed by a tax on oil exports and aims to contain the impact of rising fuel prices; vice president stated that measure is temporary
The vice-president and minister of Development, Industry, Commerce and Services, (PSB), stated this Saturday (March 28, 2026) that the federal government is considering extending the federal subsidy to contain the rise in diesel. The statement was made during a visit to a Fiat dealership in Brasília to monitor the .
“We hope that this issue of war will be resolved within 60 days, which is a tragedy. So, if necessary, you can even extend it, but it is temporary. So, at this moment, you act to avoid the impact of war on people’s lives”he stated. According to Alckmin, the government eliminated federal taxes on diesel, such as PIS/Cofins, and granted a temporary subsidy to contain rising prices.
He stated that the measure has a direct impact on inflation, by reducing freight and logistics costs. The vice-president also said that the government proposed a division of the effort with the States, with a joint subsidy of up to R$1.20 per liter, R$0.60 from the Union and R$0.60 from the state governments.
According to the minister, the price of a barrel of oil on the international market jumped from around US$60 (in current conversion, R$314.22) to more than US$100 (R$523.70). He stated that this increase is directly linked to the war in Iran, which is putting pressure on fuel prices, such as diesel, around the world. Alckmin also stated that States’ adherence to the proposal is voluntary.
“The government did its part and has a good understanding with the States”he declared.
EXPORT TAX FINANCES SUBSIDY
The diesel subsidy policy takes place in parallel with the edition of , which instituted a 12% tax on oil exports. The measure aims to compensate for the loss of revenue due to the fuel tax exemption and help finance the temporary subsidy.
Large oil companies operating in Brazil, such as , , and , . The companies argue that the tax violates the principle of tax annuality, which prevents the collection of new taxes in the same financial year in which they are created.
A remained outside the group and supports the government’s initiative. The Brazilian Institute of Petroleum and Natural Gas, which represents the sector, is divided.
While Petrobras defends the taxation, other companies criticize the measure and assess relevant impacts on their operations. Shell, for example, estimates disbursement of around R$500 million per month with the new taxation.
SUSTAINABLE CAR AND CREDIT
During the visit to the dealership, the vice-president highlighted the increase in sales of vehicles from the Sustainable Car program. According to him, models with zero IPI registered an increase of up to 25% in sales, reaching 30% in some dealerships.
The program includes entry-level vehicles costing between R$70,000 and R$80,000. They require maximum emissions of 83 grams of CO₂ per kilometer, use of flex fuel and a minimum recyclability index. Alckmin cited models from manufacturers such as Volkswagen, General Motors, Renault, Hyundai, Stellantis and Citroën, which recently had the C3 model included.
The minister also announced the expansion of credit lines for the industry. According to him, the government released R$15 billion for working capital and investment in exporters and strategic sectors. In addition, it allocated another R$10 billion at interest of 6.5% per year for the modernization of the country’s industrial park and the acquisition of more energy-efficient machinery and equipment.
