LatinNews Daily - 24 April 2026

*Brazil’s government led by President Luiz Inácio Lula da Silva has submitted a bill to congress proposing measures aimed at mitigating the impact of global oil price shocks caused by the conflict in the Middle East. The bill proposes using the additional revenue from higher oil prices to off-set tax cuts for fuels, such as reductions in rates of the PIS/Cofins federal consumption tax and the Cide federal tax on diesel, biodiesel, gasoline, and ethanol. The planning and budget minister, Bruno Moretti, has been cited in the press as saying that “if there is an extraordinary increase in revenue, this will serve as compensation for tax cuts”, insisting that the bill’s measures will be fiscally balanced. He said the government estimates that the tax cuts on gasoline could total R$800m (US$158m) after two months of the measures being implemented. This latest bill comes after several other efforts to keep fuel prices down in recent months. In March and in early April Lula already signed various decrees to decrease PIS/Cofins rates on fuels as well as on subsidies for diesel imports and production, among other measures.

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