Brazil Suspends Fuel Taxes Before Runoff

Brazil's government on Friday suspended the 0.89 reais ($0.18) per litre federal tax on gasoline imports and sales for 30 days, effective as prior relief expired. It added a 1.40 reais ($0.28) diesel-importer subsidy for 30 days on top of 2.12 reais ($0.42) already in place, totaling 3.52 reais per litre, and expanded ethanol support. Lula faces Flávio Bolsonaro in the Oct. 25, 2026 runoff. The government's Social Communication Secretariat said, "The aim is to ensure that imports remain economically viable at a critical time for fuel supply." Officials said the international situation has deteriorated since the measures announced in September and that diesel and gasoline refining margins had risen to more than double pre-war levels. They said revenue from federal oil assets will offset the fiscal impact. Flávio Bolsonaro condemned the cuts, called Lula irresponsible, and warned of a post-election price bomb. newscentraltv reported a first-round lead of 47% for Bolsonaro to 45% for Lula and cited September inflation of 0.82%. AP reported Bolsonaro received about 2 million more votes than Lula. Whether relief reaches the pump and whether the 30-day steps are extended remain open.