Brazil Diesel Subsidy and Increased Oil Export Tax

JD Supra Trade Law

Published March 12th, 2026

Detected March 14th, 2026

Summary

Brazil has published Provisional Measure No. 1,340/2026, authorizing an economic subsidy for diesel oil sales and increasing export taxes on crude petroleum oils and diesel oil. The subsidy is R$0.32 per liter and is effective until December 31, 2026, while export taxes are set at 12% for crude oil and 50% for diesel oil.

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What changed

Provisional Measure No. 1,340/2026, published on March 12, 2026, introduces significant changes to Brazil's energy sector. It authorizes an economic subsidy of R$0.32 per liter for road-use diesel oil, effective from March 12, 2026, until December 31, 2026. Concurrently, the measure establishes a 12% export tax on crude petroleum oils (NCM 2709) and a 50% export tax on diesel oil (NCM 2710.19.21) for the duration of the subsidy.

Companies involved in the import, production, and export of diesel oil and crude petroleum oils in Brazil must immediately assess the impact of these new subsidy and tax measures. Importers and producers of diesel oil will benefit from the equalization costs, while exporters of crude oil and diesel oil will face increased tax burdens. Compliance with the new tax rates and subsidy conditions is mandatory from the publication date. The specific duration of the diesel export tax is tied to the subsidy's effectiveness, requiring close monitoring of regulatory updates.

What to do next

Review the terms of Provisional Measure No. 1,340/2026 for diesel oil subsidy and export tax implications.
Adjust pricing and export strategies for crude petroleum oils and diesel oil based on new tax rates.
Monitor regulatory updates regarding the duration of the diesel oil subsidy and associated export tax.

Source document (simplified)

March 13, 2026

Provisional Measure No. 1,340/2026: Economic Subsidy for Diesel Oil and Increase of Export Tax Rate on Crude Petroleum Oils or Oils Obtained from Bituminous Minerals (NCM 2709) and Diesel Oil (NCM 2710.19.21)

Carolina Bottino, Sarah Castro Mayer Brown + Follow Contact LinkedIn Facebook X Send Embed

On 12 March, 2026, Provisional Measure No. 1,340/2026 ("PM No. 1,340/2026") was published in an Extra Edition of the Official Gazette. The Provisional Measure:

(i) Authorizes the granting of an economic subsidy for the commercialization of road-use diesel oil within the national territory, in the form of equalization of part of the costs borne by diesel oil producers and importers, in the amount of R$0.32 (32 centavos of real) per liter, effective as of March 12, 2026 and limited until December 31, 2026;

(ii) Sets a 12% tax rate for the export tax on crude petroleum oils or oils obtained from bituminous minerals, classified under Code 2709 of the Mercosur Common Nomenclature (NCM), levied on the total value of exports; and

(iii) Sets a 50% tax rate for the export tax on diesel oil, classified under Code 2710.19.21 of the NCM, for as long as the economic subsidy provided for in the referred Provisional Measure remains in effect.

PM No. 1,340/2026 entered into force on the date of its publication (12 March 2026)

*This content was produced with the participation of law clerks Luiza Nordi and Larrana Ferraz.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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