Fuel Sector Entities Comment on Recent Government Measures
The undersigned fuel sector associations commend the Federal Government’s efforts to mitigate the impact of diesel prices on consumers. We recognize that the measures announced by the government are emergency in nature and seek to reduce, at least in the short term, the effects of the significant volatility in international oil markets, even at the cost of foregoing part of the associated tax revenues.
In the short term, the measures are likely to ease some of the pressure on transportation costs, agricultural production costs, and food inflation, particularly at a time of seasonally high demand associated with agricultural harvests. However, it is important to consider the possibility of continued increases in international prices and their impact on the Brazilian market, which relies on imports for approximately 30% of its diesel supply.
It is also important to recognize that interventions of this nature carry risks. Temporary subsidies, changes to the tax framework, and additional oversight mechanisms may generate regulatory uncertainty and market distortions if they are not accompanied by predictability in supply conditions and pricing mechanisms throughout the value chain.
We believe that the most sustainable path forward for the sector is one based on price alignment with international markets, regulatory predictability, healthy competition, and policies that ensure a balanced relationship between supply and demand. In this context, the role of Petrobras, which is responsible for the majority of petroleum product supply in the Brazilian market, remains fundamental.
The recent diesel price increase announced by Petrobras on March 13, 2026, represents a partial response to supply challenges that had previously been mitigated through a series of product auctions. By their nature, these auctions tend to drive selling prices toward levels that are already close to those currently observed in international markets.
The signatory associations also express concern regarding proposals to introduce an export tax on crude oil. Measures of this kind may reduce the sector’s competitiveness, create regulatory uncertainty, and undermine investment attraction in an industry that depends on predictability and stable rules to support long-term decision-making.
