Brazilian President Luiz Inácio Lula da Silva’s government on Friday (October 9, 2026) announced new fuel tax cuts and extended existing subsidies aimed at lowering fuel prices, just over two weeks before a closely contested presidential runoff.
Flavio Bolsonaro, the son of former President Jair Bolsonaro, or grant Mr. Lula a fourth, nonconsecutive term. Mr.
Fuel prices are a particularly sensitive issue for voters, who will decide on October 25 whether to elect Sen. Bolsonaro received about 2 million more votes than Mr. Lula in Sunday’s (October 4, 2026) first round.
“The international situation has deteriorated since the measures announced in September,” the government said, adding that international diesel and gasoline refining margins had risen to more than double their pre-war levels.
The fiscal impact of the measures will be offset by the revenues from the federal government’s oil assets, it added. The government also said it would provide an additional subsidy to importers of diesel, who will receive 1.40 reais ($0.28) per liter for a period of 30 days. This amount is in addition to the 2.12 reais ($0.42) per liter subsidy already in effect.
“The aim is to ensure that imports remain economically viable at a critical time for fuel supply,” the government’s secretariat for social communication said, adding that the measures were in line with the strategy adopted by the government since the start of the Iran war.
