Brazil’s Ministry of Finance has urged the government to extend by 60 days a 12% export tax on crude oil, a measure initially introduced to counteract the impact of Middle Eastern hostilities on fuel prices and to finance subsidies for gasoline and diesel. The tax, approved by the Chamber of Foreign Trade (Camex), is set to expire on September 9 but could run until early November if the extension is granted. In a memorandum to the Ministry of Development, Industry and Trade (Mdic), Finance Secretary‑Executive Rogério Ceron cited continued international volatility and logistical constraints as justification.
Background and purpose of the tax
The export tax on crude oil was created earlier this year as a temporary tool to shield domestic consumers from spikes in global oil prices linked to the ongoing conflict in the Middle East. By levying a 12% charge on exported oil, the government aims to retain more supply domestically and generate revenue to offset subsidies that keep gasoline and diesel prices lower at the pump. The measure is administered by Camex, the inter‑ministerial body that oversees Brazil’s foreign trade policy and reports to the Ministry of Development, Industry and Trade.
Finance Ministry's argument for extension
In its official memo, the Finance Ministry argued that the international environment remains unstable, with logistical restrictions and uncertainties about oil supply from key regions, particularly the Strait of Hormuz, continuing to affect markets. The note highlighted that, during the tax’s current validity period, domestic refinarians have increased processing of crude while imports of oil and its derivatives have fallen, indicating that the tax is achieving its regulatory goal of encouraging local refining. Furthermore, Brazil’s own oil production and export volumes have continued to rise, suggesting the sector can absorb the extension without harm.
Domestic market effects
The Ministry’s technical assessment, referenced in Informative Note No. 2350/2026/MF, concluded that maintaining the 12% rate for an additional two months is compatible with the tax’s temporary character and would provide regulatory stability and predictability for market agents. It stressed that any future re‑evaluation would still consider evolving market conditions, ensuring the measure remains responsive rather than permanent.
Next steps
The matter is scheduled for discussion in the Chamber of Foreign Trade on Thursday, where a decision on the extension is expected. If approved, the tax would remain in force until early November, after which the government would again assess whether to let it lapse, modify it, or prolong it further based on the prevailing economic and geopolitical landscape.