Brazil’s Ministry of Finance confirmed late Thursday that Finance Minister Dario Durigan has signed a decree extending the gasoline subsidy program for another 30 days.
The measure maintains the current support level of R$0.44 per liter, a policy tool the government uses to shield consumers from volatile international crude prices.
The extension provides short-term stability for Brazilian motorists and logistics operators, who have relied on the subsidy to keep fuel costs manageable.
By locking in the rate for a month, the government signals its intent to manage inflationary pressures on transport and food distribution, sectors heavily dependent on diesel and gasoline prices.
However, the continued use of fuel subsidies remains a contentious issue for fiscal hawks and international investors monitoring Brazil’s public finances.
Each extension adds to the fiscal burden, raising questions about the long-term sustainability of the program amid broader economic challenges.