Brazil diesel subsidy fails to close record Petrobras-import gap

Brazil's new R$1/liter diesel subsidy, announced Sept 9, does not eliminate the record deficit between Petrobras domestic prices and imported diesel from the US, which stands at R$3.32 (102.1%) per StoneX data. The measure adds to an existing R$1.12 subsidy, but the gap remains historically wide, signaling continued fiscal pressure and potential market distortions.