Brazil Cuts Fuel Prices and Extends Subsidies Ahead of Runoff Vote

Brazilian President Luiz Inácio Lula da Silva's government announced tax cuts and subsidies to lower fuel prices ahead of the October 25 presidential runoff election.

A new decree eliminated federal taxes on gasoline imports and sales for 30 days, while diesel importers will receive an additional subsidy of 1.40 reais per liter.

The fiscal impact of the measures will be offset by federal oil asset revenues as international refining margins rose due to the ongoing conflict involving Iran.