Brazil Extends Fuel Subsidies Amid Ongoing Oil Price Volatility

Brazil's Planning Minister Bruno Moretti said that the country will maintain fuel subsidies until oil prices stabilize. The government has already spent around R$25 billion on measures to cushion consumers from volatility caused by Middle East conflicts.

The subsidy policy was designed to protect the population from price shocks without abandoning fiscal neutrality, according to Moretti. He emphasized that the economic team is committed to fiscal responsibility and that the measures have been successful in reducing domestic prices.

Moretti cited a three-month period where diesel and gasoline prices declined in Brazil while developed countries, such as the United States, Germany, and Canada, recorded significant increases. The government currently provides a subsidy of R$2.12 per liter of diesel for road transportation, valid for 30 days.