Decree requires proof of the transfer of the subsidy throughout the chain and increases the responsibility of distributors
The president’s government published, this Thursday (May 14, 2026), decree No. 12,974, which tightens the rules for monitoring and applying federal subsidies to diesel and cooking gas – LPG (liquefied petroleum gas). The idea is to ensure that discounts are effectively passed on to stations and end consumers. Here’s the (PDF – 126 kB)
The decree determines that distributors assume a formal obligation to prove the transfer of the benefit. These companies will need to declare to the (National Petroleum, Natural Gas and Biofuels Agency) that they will fully transfer the discount received through the federal subsidy to retail resellers.
The text also obliges distributors to “consolidate discounts” throughout the chain. To do this, they will have to calculate the value of the benefit received from subsidized importers and producers and record in the invoices the discount actually passed on to fuel retailers. This data will be periodically sent to the ANP, which may apply sanctions in case of non-compliance with the rules.
In the case of fuel producers and importers, who effectively receive government subsidies, it was determined that they must detail in their invoices the value of the discount resulting from the federal benefit granted on fuels sold to distributors.
FUEL SUBSIDY
The publication of the decree comes after the announcement, on Wednesday (May 13), of an MP (Provisional Measure) that creates a new subsidy for gasoline and expands the existing mechanisms for diesel.
During the announcement of the MP at the (Ministry of Mines and Energy), the Minister of Planning and Budget, Bruno Moretti, had already stated that improving inspection devices was a priority for the government.
Since the beginning of the escalation of the conflict between Iran, Israel and the United States in the Middle East, which boosted international oil prices, the Executive has been adopting a series of measures to try to contain the rise in fuel prices in Brazil. The transfer of these reliefs to the final price of fuel, however, has been seen as a problem to be resolved.
Among the measures in force are the subsidy of R$1.52 per liter for imported diesel, R$1.12 per liter for national diesel, in addition to the creation of a new tax cashback mechanism for gasoline.
