The Brazilian government extended fuel price control measures by two months until July 31, citing Middle East conflict volatility. Brazil will maintain a 1.12 reais ($0.22) per liter diesel subsidy while consolidating two April subsidies into one more efficient payment system for price stabilization.

For liquefied petroleum gas, the subsidy was extended with funding increased to 660 million reais from 330 million reais, allowing an 11 reais subsidy per 13-kilogram cooking gas cylinder. The government also extended tax exemptions on aviation kerosene and biodiesel used in road diesel blending until July 31.

Planning Minister Bruno Moretti stated fuel prices have started falling but continued measures remain necessary amid international uncertainty. While Finance Minister Dario Durigan confirmed the extension's fiscal impact at 10 billion reais, he claimed costs would be offset by oil export taxes, maintaining the government's commitment to fiscal neutrality for the 2026 budget goal.