Your fuel could become cheaper over the next two months. The federal government created a R$ 0.44 per liter gasoline subsidy to contain the impacts of the Iran war on domestic prices, with an estimated cost of R$ 2.4 billion for the initial two-month period — about R$ 1.2 billion monthly. ✓
Press quotes (1)
"O governo calcula que a medida terá custo de cerca de R$ 1,2 bilhão por mês. Como a duração inicial prevista é de dois meses, o impacto total estimado chega a R$ 2,4 bilhões."
The measure was formalized by Provisional Executive Order No. 1,358, of May 13, 2026, already published in the Official Gazette and signed by President Luiz Inácio Lula da Silva. The executive order is based on article 62 of the Federal Constitution and authorizes the granting of economic subsidies to petroleum fuel producers and importers "with the objective of mitigating economic impacts caused by the shock in the international energy market resulting from the Middle East conflict." ✓
Press quotes (2)
"medida provisória Nº 1.358, DE 13 DE MAIO DE 2026 Autoriza a concessão de subvenção econômica aos produtores e importadores de combustíveis derivados de petróleo, com o objetivo de mitigar os impactos econômicos causados pelo choque no mercado internacional de energia decorrente do conflito no Oriente Médio"
"O PRESIDENTE DA REPÚBLICA, no uso da atribuição que lhe confere o art. 62 da Constituição, adota a seguinte Medida Provisória, com força de lei"
According to Planning and Budget Minister Bruno Moretti, the R$ 0.44 amount "corresponds to about half of the federal taxes on the fuel" and was "defined with caution to avoid a greater impact on public accounts." The government initially studied benefits of up to R$ 0.89 per liter, equivalent to total federal taxes on gasoline. ✓
Press quotes (2)
"Segundo o ministro, o valor corresponde a cerca de metade dos tributos federais incidentes sobre o combustível e foi definido com cautela para evitar um impacto maior nas contas públicas"
"Inicialmente, o governo estudava um benefício de até R$ 0,89 por litro, equivalente ao total de tributos federais cobrados sobre o combustível."
The executive order establishes that "an act by the Finance Minister will define the values of economic subsidies" and takes effect on the date of its publication — May 13, 2026. The measure follows a similar model to the diesel subsidy created in March, which will have a value of R$ 0.3515 per liter starting in June. ✓
Press quotes (2)
"Ato do Ministro de Estado da Fazenda definirá os valores das subvenções econômicas previstas neste artigo."
"Art. 5º Esta Medida Provisória entra em vigor na data de sua publicação."
Gasoline subsidy will be R$ 0.44 per liter with estimated cost of R$ 1.2 billion monthly
Measure is response to oil price increase caused by Iran war
Covered by only some sources, or where the accounts diverge.
Covered by only some sources (1)
There is a parallel diesel subsidy of R$ 0.3515 per liter taking effect in June
Conflicting versions (1)
Legal status of the measure and chronology of presidential approval
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How will the subsidy work operationally — who pays (Union, Petrobras, distributors) and at what point in the chain (refinery, distribution, pump)?
Why it's still unknown: MP 1.358/2026 delegates operational details to a subsequent act by the Finance Minister, not yet published
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What is the specific constitutional basis for classifying the situation as having the 'relevance and urgency' required for executive orders?
Why it's still unknown: MP 1.358/2026 only generically cites article 62 of the Constitution, without substantiating the constitutional prerequisites of relevance and urgency
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What were the historical precedents for effectiveness of similar fuel subsidies in Brazil?
Why it's still unknown: Only one academic source mentions Petrobras subsidies in 2007-2008, but without analysis of effectiveness or duration