Senate President Davi Alcolumbre extended a provisional measure providing diesel subsidies for an additional 60 days [1, 2].
The extension maintains a critical price ceiling for fuel to prevent economic volatility. Because diesel powers the majority of Brazil's transport and agricultural logistics, any sudden price surge could trigger broader inflation across the national economy.
The measure, identified as MP 1.363/2026, authorizes a subsidy of R$ 1.12 per litre [1]. This financial support is designed to offset the economic impact of the Middle East conflict on global fuel prices [5].
According to the provisional measure, the period of application is defined from June 1, 2026, to Dec. 31, 2026 [4]. However, the legislative body required more time to analyze the policy before it expired. The original provisional measure was first published on May 13, 2024 [3].
Alcolumbre, who also serves as the president of the National Congress, granted the extension while the legislature awaits the installation of a special mixed commission [1, 3]. This commission will be responsible for the formal review, and potential permanent adoption, of the subsidy framework.
The move ensures that the R$ 1.12 per litre benefit remains in force during the review process [1]. By delaying the final decision, the Senate avoids a potential price shock that would occur if the subsidy lapsed before the commission could reach a consensus.
“The extension maintains a critical price ceiling for fuel to prevent economic volatility.”
This legislative delay indicates that the Brazilian government views fuel price stability as a priority over immediate fiscal closure. By extending the subsidy, the Senate is buying time to navigate the political complexities of a mixed commission without risking a sudden spike in transportation costs that could destabilize the domestic market.
