New tax and economic measures related to the fuel sector in Brazil

On March 12, 2026, the Brazilian Federal Government announced a set of tax and economic measures targeting the fuel sector through Provisional Measure No. 1,340/2026 and Decree No. 12,875/2026.

The initiatives were introduced in response to the recent increase in international oil prices and are intended to mitigate potential impacts on the domestic market, particularly with respect to diesel pricing.

Below we summarize the main measures adopted and their scope.

Export Tax on crude oil

Provisional Measure No. 1,340/2026 introduced a 12% Export Tax (IE) on exports of crude petroleum oils or oils obtained from bituminous minerals, classified under NCM code 2709 (Brazil’s tariff nomenclature aligned with Mercosur standards).

Key points:

• The tax applies to crude oil exports by domestic producers and exporters.

• The measure has a regulatory nature and may affect the competitiveness of Brazilian crude oil exports.

• The Provisional Measure provides that the rate may be reduced by the Executive Management Committee of the Foreign Trade Chamber (Gecex/Camex), in line with foreign trade or national energy policy guidelines.

 

Export Tax on diesel

The same Provisional Measure also introduced a 50% Export Tax on exports of diesel, classified under NCM code 2710.19.21.

Key points:

• The tax applies to export transactions involving diesel.

• The measure is temporary and will remain in effect while the economic subsidy established by the same Provisional Measure is in force, subject to a maximum deadline of December 31, 2026.

• The mechanism seeks to discourage diesel exports and prioritize the supply of the domestic market during the effectiveness of the other measures.

 

Reduction of PIS and COFINS tax burden on diesel

Decree No. 12,875/2026 amended Decree No. 5,059/2004 to reduce the effective PIS and COFINS tax burden applicable to the import and commercialization of diesel and related products.

The decree introduced a reduction coefficient of 0.99987, applicable to the contributions until May 31, 2026.

Key points:

• The amendment significantly lowers the federal tax burden applicable to diesel.

• The reduction is achieved through a reduction coefficient mechanism, without changing the nominal statutory rates of the contributions.

• This measure applies to both import and commercialization transactions, affecting producers, importers and distributors operating within the diesel supply chain.

 

Economic subsidy for diesel commercialization

Provisional Measure No. 1,340/2026 also created an economic subsidy for diesel producers and importers, linked to the commercialization of the fuel in the domestic market.

The subsidy corresponds to BRL 0.32 per liter sold, subject to a overral cap of BRL 10 billion.

Key points:

•  The subsidy may be accessed upon prior voluntary enrollment by interested economic agents.

•  Payment of the subsidy is conditioned on compliance with a reference price to be defined by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).

•  The benefit must be fully passed through to domestic market prices.

•  The program will remain in force until December 31, 2026, or until the overall financial limit is reached, whichever occurs first.

•  The regulation establishes monitoring and enforcement mechanisms, including information sharing between the Brazilian Federal Revenue Service (RFB) and the ANP, as well as administrative sanctions in case of non-compliance with the program’s conditions.

If you have any questions, our Tax and Energy & Natural Resources teams are available to assist.