Brazil Extends Emergency Measures To Contain Fuel Prices

Sao Paulo, Brazil: Brazil has extended emergency measures for two months to contain fuel price increases caused by volatility in the global oil market amid the tension involving the United States and Iran, the government said Saturday.

The measures, extended by President Luiz Inacio Lula da Silva, will remain in effect until July 31.

According to an official statement, the move continues government actions adopted in response to turbulence in the global oil market since the start of the conflict in the Middle East.

The measures include a subsidy of 1.12 reais, or about 20 U.S. cents, per liter of diesel for domestic refiners and importers, fully financed with federal funds.

The Finance Ministry also created a compensation mechanism for diesel producers and importers, replacing a temporary exemption from federal taxes that was in effect until May 31.

Mines and Energy Minister Alexandre Silveira said the measures are aimed at preventing the impact of the war from being passed on to Brazilian consumers.

"We are being proactive and providing effective responses that will help contain fuel prices and ensure supply in Brazil," he said.

Planning and Budget Minister Bruno Moretti said the government will continue monitoring the international situation and adjust measures if uncertainty persists in global energy markets.

Authorities said the policies could be reviewed again at the end of July, depending on international oil prices.

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