Brazil extends diesel subsidy R$2.12/liter through October, signals new cycle

Brazil's Treasury issued a decree unifying the legal basis for the diesel subsidy under MP 1.391, effective September 27, 2026, extending the R$2.12 per liter subsidy until end of October. This signals a new 30-day cycle, indicating continued government intervention to cap fuel prices ahead of elections. The move supports inflation control but raises fiscal concerns.