Brazil allocates R$7.5B extra fuel subsidy to curb price spike from Middle East conflict

Brazil's government opened an extraordinary credit line of R$7.52 billion to fund fuel subsidies, aiming to prevent domestic price increases from oil volatility linked to the Middle East conflict. The measure increases the Ministry of Mines and Energy budget, with R$1.35 billion earmarked for petroleum-derived fuel production and import. This signals fiscal expansion and potential inflationary pressure, while shielding consumers from global energy shocks.