Brazil extends emergency measures to contain fuel prices

Brazil has extended emergency measures for two months to contain fuel price increases caused by volatility in the global oil market amid the war involving the United States, Israel and Iran, the government said Saturday.



The measures, extended by President Luiz Inacio Lula da Silva, will remain in effect until July 31.



According to an official statement, the move continues government actions adopted in response to turbulence in the global oil market since the start of the conflict in the Middle East.



The measures include a subsidy of 1.12 reais, or about 20 U.S. cents, per liter of diesel for domestic refiners and importers, fully financed with federal funds.



The Finance Ministry also created a compensation mechanism for diesel producers and importers, replacing a temporary exemption from federal taxes that was in effect until May 31.