Brazil’s finance minister, Fernando Haddad Moretti, has indicated that the government will dismantle its diesel subsidy at a slower pace than the support for gasoline.
The administration is prioritizing a gradual withdrawal to prevent a sudden spike in fuel costs that could ripple through the logistics and transportation sectors.
Moretti explained that while international crude oil prices have retreated from recent peaks, the domestic pricing environment remains sensitive.
A rapid removal of diesel support could trigger an immediate shock to consumer prices and inflation expectations, complicating the central bank’s monetary policy path.
The differentiated approach reflects the distinct demand elasticities between passenger vehicles and freight transport.
This policy nuance comes as global energy markets digest shifting geopolitical dynamics.