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Brazil extends fuel subsidies as Middle East tensions spike prices

2026-05-30G1 Economia

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The federal government has extended a set of measures to contain the rise in fuel prices caused by the conflict in the Middle East. Starting this Monday (01), a subsidy of R$1.12 per liter of diesel oil takes effect for refineries and importers, in addition to a new benefit of R$0.35 per liter for road diesel A, which replaces the PIS/Cofins tax exemption. In the case of LPG, federal subsidy resources were doubled, going from R$330 million to R$660 million, ensuring a discount equivalent to R$11 per 13-kilogram cylinder until July 31. Tax exemptions on aviation kerosene and biodiesel were also extended until the same date. The strategy was adopted after Congress failed to advance the analysis of a bill authorizing the use of extraordinary oil revenues to offset the tax reduction.

Published: 05/30/2026 19:21

The Ministry of Finance set at R$351.50 per cubic meter (R$0.35 per liter) the value of the subsidy for type "A" diesel oil, to be paid to producers and importers starting this Monday (June 1st), with an initial validity of two months. The measure works as a "cashback" to offset the end of the R$0.35 per liter exemption on federal taxes, which expires on Sunday (31), preventing pass-through to consumers at the pumps. The initiative is part of the government's package to mitigate the effects of rising international oil prices, driven by tensions in the Middle East. The subsidy was made possible by a provisional measure issued on May 13, after Congress halted a complementary bill sent in April that would have authorized the use of extraordinary oil revenues to offset the tax reduction on fuels.

Published: 05/30/2026 15:16

Mercosur and Canada concluded a new round of negotiations for a trade agreement, with five chapters advancing to the final conclusion phase. According to the Minister of Development, Industry, Trade and Services, Márcio Rosa, about 60% of the agreement is already settled, with expectations of finalization still in 2026, possibly before September. Trade flow between Brazil and Canada reached US$10.4 billion in 2024, with Brazilian exports of US$7.3 billion — up 14.8% and a historical record — making Canada the eighth-largest destination for the country's foreign sales. Among the most exported products are aluminum, nickel and copper ores, sugar, coffee, and aircraft. A new round is scheduled for next month in Brasília, amid Canadian efforts to diversify markets.

Published: 05/30/2026 15:05

The Federal Revenue Service closed the 2026 Income Tax filing deadline with 44,498,717 returns received, according to Finance Minister Dario Durigan. Taxpayers required to file who missed the deadline are subject to a fine of 1% per month on the tax due, capped at 20%, with a minimum amount of R$165.74. Late filing may be made starting at 9 a.m. next Monday (1st), through the same official channels. Payment of the fine must be made via Darf within 20 days, with the risk of interest accrual at the Selic rate, and may also be deducted from any refund due. The Revenue Service has not yet disclosed the number of taxpayers who failed to comply with the obligation.

Published: 05/30/2026 15:01

The federal government published this Friday (29) a decree extending until July 31 the exemption from federal taxes on the sale and import of aviation kerosene (QAV) and biodiesel, whose benefit was due to expire on Sunday (31). The measure is part of a package announced in April to contain the rise in fuel prices in light of the surge in oil prices caused by the war in the Middle East, with a total cost estimated at R$30.5 billion by the Ministry of Planning. According to Abear, QAV came to represent about 45% of airlines' operating costs after Petrobras' latest price adjustment. The government states that the fiscal impact will be offset by revenues such as oil royalties and collection on diesel oil, avoiding effects on public accounts.

Published: 05/30/2026 11:54

The federal government published on Friday (29) a decree detailing an additional R$22.1 billion freeze in the 2026 Budget, raising the total limitation for the year to R$23.7 billion. The most affected ministries are Defense (R$4.363 billion), Cities (R$3.320 billion), and Education (R$1.605 billion), followed by Transportation, Finance, and Health. Parliamentary amendments also suffered a cut of R$4.9 billion, while the Executive's discretionary expenses were contained by R$18.7 billion. The measure is necessary to comply with the fiscal framework, which limits real spending growth to 2.5% per year and to 70% of the projected revenue increase. Ministries such as Labor, Social Security, and Justice were left out of the freeze.

Published: 05/30/2026 11:20

Brazilian agribusiness, which grew 2% in the first quarter of 2026 according to IBGE — driven by soybeans —, is expected to lose momentum in the coming months and enter a downward trajectory through 2027. The main risk is the formation of El Niño between June and July, a phenomenon that may cause droughts in the Central-North and excessive rainfall in the South, delaying planting and compromising harvests, in a scenario comparable to 2014-2015, when the country faced its largest crop failure. Adding to the pressure are rising production costs, especially of fertilizers, ample global grain supply with high stocks pressuring commodity prices, and the appreciation of the real against the dollar, which reduces the revenue of soybean, corn, cotton, and coffee producers. In livestock, a "cycle turnaround" is taking place, with retention of females after three years of record slaughters. The comparison base is also challenging, since the sector grew 12% in the previous year, considered "off the curve."

Published: 05/30/2026 08:00

Chevrolet confirmed the production of the Captiva EV electric SUV at the Horizonte plant in Ceará, the same factory where the Spark is already assembled. Currently sold for R$220,000, the model is derived from the Wuling Starlight S and offers a 201 hp front electric motor, a 60 kWh lithium iron phosphate battery, and a range of 304 km by the Inmetro standard — numbers considered modest compared to competitors in the same price range. Performance is also discreet, with acceleration from 0 to 100 km/h in 9.9 seconds and a top speed of 150 km/h. The nationalization of the model reinforces GM's strategy to expand its electric offering in Brazil, although the vehicle has points to improve, such as the multimedia system and internal ergonomics, which fall short of the standard set by the brand in other models.

Published: 05/30/2026 07:01

The credit options available in Brazil present significant cost differences, mainly defined by interest rates and the guarantees required by financial institutions. Overdraft facilities and credit cards are among the most expensive options on the market, recommended only for short-term emergencies. Personal loans and payroll-deductible loans offer lower interest rates, while mortgage financing stands out as the cheapest option, as it uses the property itself as collateral for the bank. Experts emphasize that credit can be an ally in financial organization, but warn against using long-term debt to cover immediate consumption expenses, a practice that tends to compromise household budgets.

Published: 05/30/2026 05:00

With two days left until the deadline, only 49.7% of the 16.7 million active Individual Microentrepreneurs in Brazil had filed the Simples Nacional Annual Return (DASN-SIMEI) by Friday (29), according to Federal Revenue data. Filing, mandatory even for those with no revenue, must be done through the Entrepreneur Portal by Sunday (31) and refers to the gross revenue for 2025, whose annual limit for eligibility in the regime is R$81,000. Non-compliance may result in fines and even cancellation of the CNPJ, which also occurs when the MEI goes two years without paying mandatory monthly contributions. The regularization of the category is relevant for tax collection and for the formalization of small businesses, which represent a significant share of the Brazilian economy. *Digest automatically generated on 2026-05-30*

Published: 05/30/2026 03:01