Government will keep a R$0.44-per-liter gasoline subsidy in place for another 30 days following renewed tensions in the Middle East
Finance Minister Dario Durigan confirmed that Brazil’s government has decided to extend the R$0.44-per-liter gasoline subsidy. The measure was introduced on May 25 but was originally scheduled to remain in effect for only two months, meaning it would expire on Saturday (25).
“We will not let the Brazilian people pay more for fuel. We will continue providing this support,” Durigan said when asked about the measure during an interview with BandNews on Thursday (23) evening.
In a statement, the Finance Ministry said the ordinance extending the gasoline subsidy was signed by the minister on Thursday and will be published in Friday’s (24) edition of Brazil’s Official Federal Gazette. The subsidy will remain at R$0.44 per liter for another 30 days, effective from July 26.
The extension was prompted by the recent surge in Brent crude prices on international markets. The economic team had initially planned to phase out the gasoline subsidy in July after the United States and Iran reached an agreement aimed at ending the conflict in the Middle East. The announcement had driven Brent prices down to around $70 per barrel, close to pre-war levels.
The agreement, however, was not implemented, and tensions in the Middle East escalated again. At Thursday’s close, Brent crude rose 7.04% to $100.69 per barrel. As a result, the government decided to maintain the gasoline subsidy for another 30 days.
A separate subsidy of R$1.12 per liter for diesel also remains in effect. The Finance Ministry said that measure was extended for an additional 60 days on July 16.
*By Jéssica Sant’Ana — Brasília
Source: Valoar International
https://valorinternational.globo.com/