Brazil's President Lula cuts taxes, grants 30 day gasoline exemption
Just weeks ahead of Brazil's presidential runoff, President Lula has cut taxes and rolled out new fuel subsidies to keep prices down.
Gasoline imports and sales are now subject to federal tax exemptions for 30 days, with the possibility of an extension, a move clearly timed as he faces off against Senator Flavio Bolsonaro on October 25, 2026.
For context, Bolsonaro led the first round by two million votes.
Diesel subsidy about $0.70 per liter
Brazil relies on refined-fuel imports and diesel-price stability for truck drivers and food inflation.
The government just bumped up diesel subsidies (now totaling about $0.70 per liter) to help with rising costs linked to global conflicts.
Lula's team hopes these steps will keep food inflation in check and prevent a repeat of the 2018 truckers' strike that caused food prices to spike, left grocery market shelves and gas stations depleted, and caused billions in losses.
The plan is to cover these costs using revenue from federal oil assets.