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Gas Prices Adjusted: Government Cuts Fuel Taxes Following Global Oil Surge, Reducing Gasoline Tax by R$0.63 per Liter, Zeroing Ethanol Taxes, and Introducing R$1 Per Liter Subsidy for Diesel

Author profile image Maria Heloisa Barbosa Borges
Written by Maria Heloisa Barbosa Borges Published on 10/09/2026 at 00:08
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Decree signed on Wednesday, September 9, 2026, reduces R$ 0.63 per liter in PIS/Pasep and Cofins on gasoline, zeros out contributions on hydrated ethanol, and creates an initial R$ 1 subsidy per liter for diesel. The measure replaces the current R$ 0.44 set by MP 1.358/2026, according to the Planalto.

The Federal Government announced on Wednesday, September 9, 2026, the signing of a decree that reduces the PIS/Pasep and Cofins rates by R$ 0.63 per liter of gasoline and zeros out contributions on hydrated ethanol. For diesel, a subsidy of R$ 1.00 per liter is set for “the first period,” an amount that may be adjusted, suspended, or extended by the Ministry of Finance depending on market conditions.

The information was published by ND Mais on September 9, 2026, from a text by Larissa Ferreira, edited by Renato Becker, based on a statement from the Secretariat of Social Communication of the Palácio do Planalto.

R$ 0.63 Less Per Liter in Federal Taxes on Gasoline

Government altered tax rates affecting gasoline and ethanol. Photo: AI-generated image
Government altered tax rates affecting gasoline and ethanol. Photo: AI-generated image

The decree reduces the PIS/Pasep and Cofins rates that apply to each liter of gasoline in Brazil by R$ 0.63.

The government’s stated goal is to mitigate the rising prices of international oil and fuels.

Hydrated Ethanol Tax Contributes Zeroed Out

In addition to the gasoline cut, the decree zeros out the PIS/Pasep and Cofins contributions on hydrated ethanol.

This measure affects the fuel sold directly at the pumps for flex-fuel vehicles.

Diesel Receives R$ 1 Per Liter “In the First Period”

For diesel, the government established a subsidy of R$ 1.00 per liter “in the first period.”

The subsidy is a financial support, not a tax cut, unlike the arrangements made for gasoline and ethanol.

Ministry of Finance Can Modify, Suspend, or Extend the Subsidy

The R$ 1 per liter diesel subsidy can be modified, suspended, or extended by an act from the Ministry of Finance, depending on market conditions.

The rule makes the subsidy conditional on international price trends.

The rate is the percentage used to calculate how much one pays in a specific tax, explains ND Mais.

PIS/Cofins are social contributions whose collection is allocated for specific purposes, applying to revenues as well as imports of goods and services.

Decree replaces the R$ 0.44 from MP 1.358/2026

In a statement, the Secretariat for Social Communication of the Palácio do Planalto stated that the reduction of tax rates for gasoline replaces and expands the economic support outlined in Provisional Measure 1.358/2026.

The MP set a rate of R$ 0.44 per liter and was in effect until the announcement day. The new cut of R$ 0.63 is R$ 0.19 higher per liter.

MP authorizes financial support for producers and importers

MP 1.358/2026 allows the government to grant economic subsidies, that is, financial support, to producers and importers of petroleum-derived fuels.

This instrument supports the R$ 1 subsidy per liter announced for diesel.

Durigan, Moretti, and Silveira detail the measures at 5:30 PM

Ministers Dario Durigan (Finance), Bruno Moretti (Planning), and Alexandre Silveira (Mines and Energy) were scheduled to detail the measures in a press conference at 5:30 PM this Wednesday.

The press conference was scheduled for the same day the decree was signed.

Package announced on September 9 replaces the current MP

On September 9, 2026, the package for gasoline, ethanol, and diesel was announced as a response to the international rise in oil prices, replacing the R$ 0.44 support per liter from MP 1.358/2026.

The R$ 0.63 cut on gasoline and the elimination of ethanol taxes come by decree, while the R$ 1 subsidy for diesel is subject to review by the Finance Ministry.

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Maria Heloisa Barbosa Borges

I cover construction, mining, Brazilian mines, oil, and major railway and civil engineering projects. I also write daily about interesting facts and insights from the Brazilian market.

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