Government extends exemption on gasoline and ethanol until December 9

The federal government extended the exemption on gasoline and ethanol until December 9, 2026 and maintained, until the same date, the subsidy on ethanol. The measures are contained in a decree published in an extra edition in the Official Gazette of the Union (DOU).

In a statement, the Presidency of the Republic informed that the objective is to avoid the inflationary impact resulting from the rise in international oil prices caused by the conflict in the Middle East.

“The measure continues the reduction that was in effect from September 10 to November 9, 2026,” highlighted the statement.

Understand

The rates of the contribution to the Social Integration Program and the Public Servant Asset Formation Program (PIS/Pasep) and the Contribution to Social Security Financing (Cofins) on the import and sale of gasoline and its chains remain reduced to zero per cubic meter.

The measure, according to the Presidency of the Republic, does not cover aviation gasoline.

The decree also extends, until December 9, 2026, the reduction to zero of the specific rate of the Economic Intervention Contribution (Cide) on the import and sale of gasoline.

In the case of hydrated ethanol fuel, the PIS/Pasep and Cofins rates will also remain zero until December 9, 2026.

The subsidy of R$0.428 per liter of hydrated ethanol fuel was also maintained, to be paid to producers and cooperatives of producers of biofuels destined for final consumption. The measure is also valid until December 9, 2026, extendable by act of the Ministry of Finance.

“The subsidy seeks to preserve the competitive advantage of biofuels in relation to fossil fuels, as provided for in legislation”, reinforced the statement from Palácio do Planalto.

Impacts

In a note, the Ministry of Finance informed that the estimated fiscal impact of extending the exemptions on gasoline and ethanol over the next 30 days will be R$2.76 billion.

“This amount will be offset by extraordinary revenues for the Union from the oil sector, ensuring the fiscal neutrality of the measure.”

The extension of the economic subsidy for hydrated ethanol will have an estimated impact of R$813.41 million over a period of 30 days.

“The measures are temporary in nature and are part of the federal government's response to the effects of restrictions on the international fuel market, which have caused an increase in oil prices, an increase in international refining margins and a widening of the difference between import parity prices (PPI) and those charged by national producers”, concluded the ministry.