Brazil opens $1.5 billion (7.52 billion reais) extraordinary credit for fuel subsidies
- Credit goes to Ministry of Mines and Energy
- $1.23 billion (6.17 billion reais) for road-use diesel subsidy
- $269 million (1.35 billion reais) for petroleum-derived fuels subsidy
BRASILIA, Oct 8 — Brazilian President Luiz Inacio Lula da Silva on Oct 8 signed a provisional measure opening an extraordinary credit of $1.5 billion (7.52 billion reais) for the Ministry of Mines and Energy, to fund subsidies for producers and importers of fuel.
Provisional Measure No. 1,395 was published on Oct 9 in the Diario Oficial da Uniao, Brazil's official gazette. It has the force of law and took effect on the date of its publication, the text says.
According to the measure's annex, the funds are assigned to the National Agency of Petroleum, Natural Gas and Biofuels (ANP), a unit of the ministry.
The annex sets aside $1.23 billion (6.17 billion reais) for the economic subsidy for the production and import of road-use diesel oil. That subsidy was created under Provisional Measure No. 1,363, of 2026.
The other $269 million (1.35 billion reais) goes to the economic subsidy for the production and import of petroleum-derived fuels, created under Provisional Measure No. 1,358, of 2026.
The full amount comes from the fiscal budget, and none from the social security budget, according to the annex.
The measure cites Article 62 of the Constitution, together with Article 167, Paragraph 3, as its legal basis. It is signed by Lula and Bruno Moretti.