Government publishes MP 1,391 authorizing temporary diesel subsidy
Published · Updated
What happened
The federal government published Provisional Measure No. 1,391 on the night of September 11, 2026, authorizing a new subsidy for road diesel producers and importers. The subsidy can be activated by a Finance Ministry act for up to 30 days and extended once for another 30 days.
Why it matters
A diesel subsidy can alter the short-term path of fuel prices, headline inflation, and inflation expectations, while also creating a new fiscal outlay and implementation burden. Because the legal authority is now in force, markets and regulated sectors will look for immediate details on funding, eligibility, and duration.
Late on September 11, the federal government published Provisional Measure No. 1,391 creating a temporary subsidy mechanism for road diesel producers and importers. The measure allows the benefit to run for up to 30 days from a Finance Ministry act, with one possible extension for the same period. The publication creates an immediate implementation question for the Finance Ministry and an immediate policy-mix question for the Central Bank, because the measure can lower near-term fuel price pass-through while adding fiscal cost and operational demands.
Watch for
Finance Ministry ordinance defining the subsidy start date, reimbursement formula, and budget source by 2026-09-15 National Treasury statement on the fiscal classification and cash-execution treatment of MP 1,391 by 2026-09-15 Central Bank of Brazil market communication or minutes referencing diesel subsidy effects on short-term inflation path by 2026-09-17 Chamber of Deputies leadership formal filing of the congressional review timetable for MP 1,391 by 2026-09-15
Sources
- Câmara dos Deputados · camara.leg.br
- Medida Provisória nº 1.391, de 11 de setembro de 2026 · in.gov.br