Brazil Announces Package of Measures to Curb Fuel Price Increases
On March 12, 2026, the Brazilian Federal Government announced a package of measures aimed at curbing the increase in fuel prices in the country. Among the initiatives announced, the following stand out:
- Decree No. 12,875, which reduces to zero the PIS and COFINS contribution rates levied upon the importation and commercialization of diesel oil;
- Decree No. 12,876, which regulates Laws No. 8,078/1990 and 9,478/1997, establishing transparency and oversight measures to combat speculation and abusive fuel pricing in Brazil; and
- Provisional Measure No. 1,340 (“PM No. 1,340/2026”), which establishes an economic subsidy for diesel oil and increases the export tax rate applicable to crude petroleum oils or oils obtained from bituminous minerals (NCM 2709) and to diesel oil (NCM 2710.19.21).
Additionally, within the scope of these measures, Decree No. 12,878/2026 was published on March 13 in an Extra Edition of the Official Gazette of the Federal Government (“DOU”). This decree regulates the subsidy to diesel oil producers, importers, and distributors provided for in PM No. 1,340/2026.
In summary, Decree No. 12,878/2026 regulates the granting, by the Federal Government, of an economic subsidy for the commercialization of road-use diesel oil in the amount of BRL 0.32 (32 cents) per liter, applicable from March 12, 2026 to December 31, 2026.
The beneficiaries of the subsidy are producers, importers, and distributors of diesel oil, including in import transactions carried out by them (including those transactions carried out on their behalf and on behalf of third parties).
Under Decree No. 12,878/2026, the economic subsidy will be calculated on a monthly basis, based on a reference price established for each calculation period, which will be regulated by the National Agency of Petroleum, Natural Gas and Biofuels (“ANP”).
Parties interested in obtaining the subsidy must apply for eligibility through an agreement submitted to the ANP, and must also authorize the Agency to access their electronic invoices (“NF-e”) before the Brazilian Federal Revenue Service.
For more information regarding this Legal Update, please contact our Tax team at: TaxpartnersTC@mayerbrown.com.
