Brazil Gasoline Tax Relief Set to Expire

Brazilian drivers could pay more for petrol (gasoline) from Tuesday 10 November, because a temporary federal tax cut ends on Monday 9 November. As of Sunday 8 November 2026, no extension had been published.

The cut is one of several measures Brasília took to soften an oil price surge linked to the Middle East conflict. A claim now circulating in Brazil, that fuel would cost twice as much without government action, rests on no published calculation that we could find.

Brazil extended zero federal taxes on petrol for 30 days, and that relief ends on Monday 9 November unless the government renews it.

What Changes on 10 November

Decree 13,134, published on 9 October 2026, extended the zero rates of PIS/Pasep, Cofins and Cide on petrol for 30 days, after an earlier decree. These federal taxes are charged when fuel is imported or sold, and they sit inside the pump price.

The government values the relief at R$0.89 a litre of gasoline A (about US$0.16), the fuel before ethanol is blended in. If the relief lapses, the taxes return from 10 November, and the effect at the pump can differ from that figure.

The Oil Shock Behind the Measures

Brent crude is the global oil benchmark, and the US Energy Information Administration (EIA) expects it to average about US$105 a barrel in the fourth quarter, in its October outlook. Brazil imports part of its petrol and diesel, so world prices reach its pumps.

Diesel has its own support: a federal subsidy of R$2.12 a litre (about US$0.39), which the government has extended. We could not confirm its current end date.

Would Fuel Really Cost Twice as Much?

A headline in Brazil says fuel would be twice as expensive without the government’s action. We found no calculation from the finance ministry, Petrobras (the state-controlled oil company) or the regulator that supports a doubling.

The published numbers are smaller: a tax relief of R$0.89 a litre against a pump price near R$6.48 is about 14% of the price. Subsidies and Petrobras’s own pricing add to the effect, but on these figures the tax cut alone cannot explain a doubling.

What It Means for You

Investors in Petrobras’s US-listed shares (ADR ticker PBR) can watch the government’s decision on fuel relief. A rise at the pump would also feed into Brazil’s monthly inflation readings.

Visitors renting cars could see slightly higher fuel costs from 10 November if the relief lapses. Our coverage of the oil shock continues in Brazil Fuel Prices Face Oil Up to 11% Dearer and Petrobras Shares Fall Over 20% in Two Weeks.

What Is Not Known

It is not known whether the government will renew the tax cut, or who first made the “twice as expensive” claim. It is also unclear how much stations will pass on if the relief ends, and when the diesel subsidy expires.

Frequently Asked Questions

Will Brazil extend the gasoline tax cut?

Not announced as of 8 November 2026. The relief runs to 9 November and can only continue through a new government act.

Would Brazilian fuel cost twice as much without government action?

We found no published calculation showing that. The tax cut is worth up to R$0.89 a litre, about 14% of a R$6.48 pump price.

Sources: Decree 13,134 of 9 October 2026 (planalto.gov.br); ANP (National Petroleum Agency) weekly fuel price survey, 25–31 October 2026 (gov.br/anp); EIA Short-Term Energy Outlook (eia.gov); Brazil’s finance ministry (gov.br/fazenda).