Brazil issues Provisional Measure 1,391 to cushion diesel prices
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What happened
The Presidency and economic authorities published Provisional Measure No. 1,391 on September 11, 2026, establishing a temporary intervention to cushion diesel prices in Brazil. The measure was issued as fuel-supply conditions tightened amid geopolitical conflict and is intended to reduce immediate pass-through from diesel costs to transport and consumer prices.
Why it matters
Diesel is a core input for road freight and agricultural logistics, so a temporary price-cushioning mechanism can alter the near-term path of consumer inflation and inflation expectations. The measure also changes the fiscal and regulatory setup immediately, because implementation details will determine who absorbs the cost and how long the intervention remains in force.
The federal government published Provisional Measure No. 1,391 on September 11, 2026, creating a near-term intervention aimed at limiting diesel-price pass-through during fuel-supply instability linked to geopolitical conflict. The move puts a new policy instrument into effect immediately, with direct relevance for freight costs, food distribution, inflation expectations, and the near-term policy mix between fiscal support and disinflation. It also opens a live implementation question for the economic team over funding, duration, and targeting, as markets and transport sectors test whether the measure is sufficient to stabilize pump and wholesale pricing.
Watch for
Ministry of Finance publication of the funding and compensation rules for MP 1,391 by 2026-09-15 ANP release of refinery, import, and distributor diesel price data showing whether domestic spreads narrow by 2026-09-15 Petrobras statement on diesel pricing policy or refinery gate adjustments after MP 1,391 enters into force by 2026-09-15 BCB market expectations release on 2026 and 2027 IPCA showing any revision linked to diesel pass-through in the next Focus publication after 2026-09-12