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MP 1.349/2026 creates a diesel subsidy of R$ 1.20 per liter for imported and R$ 0.80 for national, in addition to obliging distributors to disclose profit margins weekly under penalty of a fine of up to R$ 500 million
In the first week of April 2026, the federal government enacted Provisional Measure No. 1.349, which creates an emergency supply regime with a diesel subsidy of up to R$ 1.20 per liter for imported diesel and R$ 0.80 per liter for diesel produced in Brazil. The measure was signed by President Luiz Inácio Lula da Silva and published in the Official Gazette on April 7.
The motivation is direct: since the beginning of the conflict between the United States and Iran, the price of oil has risen by more than 30% in the international market.
Furthermore, diesel in Brazil became 41% more expensive and gasoline rose 31%, according to data from the International Energy Agency (IEA) itself.
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The impact on Brazilians’ pockets is already being felt at gas stations, supermarkets, and in public transport.
How much the government will pay per liter for the diesel subsidy
MP 1.349 establishes three layers of subsidy that add to a previous measure, MP 1.340, which already provided for R$ 0.32 per liter.
Therefore, the total subsidy value reaches R$ 1.52 per liter of imported diesel.
- Imported diesel: R$ 1.20 per liter — divided equally between the Union (R$ 0.60) and states (R$ 0.60)
- National diesel: R$ 0.80 per liter — entirely funded by the federal government
- LPG (cooking gas): R$ 850 per ton of imported product
At least 21 states have already joined the agreement to share the cost of imported diesel with the Union.
The states’ counterpart will be directly withheld from the State Participation Fund.
The cost to public coffers reaches R$ 7.3 billion
The spending limits defined in the MP are significant.
For imported diesel, the cap is R$ 4 billion, of which up to R$ 2 billion can be linked to the states’ adherence.
The subsidy for national diesel has a cap of R$ 3 billion, financed exclusively by the Union.
For LPG, the limit is R$ 330 million.
Summing the two MPs (1.340 and 1.349), the government has allocated R$ 10 billion solely to subsidize diesel since March 2026.
All measures are valid from April 1 to May 31, 2026.
Distributors will have to reveal profit margins every week
The most unprecedented novelty of the MP is the transparency requirement.
Every distributor that adheres to the diesel subsidy will be obliged to weekly inform their gross profit margins to the National Agency of Petroleum (ANP).
The data includes margins per product, per economic agent, and per reference week.
Furthermore, the obligation is retroactive: data must be sent since February 22, 2026.
According to the Minister of Planning, Bruno Moretti, the logic is simple: “If distributors acquire subsidized products, they need to provide transparency on their profit margins, demonstrating that they did not increase margins and passed on the discount to consumers.”
Companies that do not disclose will lose access to subsidized fuel.
In addition, importers and producers are prohibited from selling to irregular distributors.
Fines of up to R$ 500 million for those who abuse prices
The MP foresees severe penalties for abusive behavior in the sector.
The Minister of Mines and Energy, Alexandre Silveira, detailed the penalties: “Not practicing prices fixed in the subsidy legislation, a fine of up to R$ 1 million. Not sending information to the ANP, a fine of up to R$ 1 million. Abusive pricing practices, a fine of up to R$ 500 million.”
The fines also apply to shareholders with more than 20% of the company who abusively raise prices.
In extreme cases, the ANP may order the interdiction of the supplier’s facilities.
The National Consumer Secretary, Ricardo Morishita Wada, added: “Those who increased prices despite public resources are already being monitored.”
Inspection has already opened 378 investigations at 8,226 gas stations
The ANP has intensified its presence at gas stations since the beginning of the crisis.
By mid-April, 8,226 gas stations had been inspected across the country.
Of this total, 378 investigations were opened against distributors suspected of irregular practices.
In addition, the MP also amends the National Fuel Supply Law to tighten inspection rules.
The provisional measure comes into force immediately.
The National Congress has up to 120 days to analyze it and decide whether to convert it into law.
Cooking gas will also have a subsidy of R$ 850 per ton
Imported LPG will receive a subsidy of R$ 850 per ton, valid until May 31.
The total limit for this measure is R$ 330 million.
For low-income families, the impact could mean the difference between being able to buy the 13 kg cylinder or not, whose price has risen in recent months following the oil barrel.
The rise in oil prices that benefited Brazilian exports is now taking its toll on the domestic market.
Sector points to risks of uncertainty with new rules
Not everyone received the measures with enthusiasm.
Sindiminas, the union representing distributors, warned that the new rules for margin disclosure “increase uncertainties and may deter distribution companies.”
However, the government maintains that transparency is a condition for receiving public money.
The MP also opens a temporary credit line for airlines, by amending the National Civil Aviation Fund law.
For now, the measure is temporary. If the war in the Middle East extends beyond May, the government will need to issue new measures to keep the diesel subsidy active.
Even so, the obligation to disclose profit margins weekly marks a structural change in the relationship between the government, distributors, and fuel consumers in Brazil.
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