LatinNews Daily - 01 July 2026

*Brazil’s government has announced the start of a gradual phaseout of measures adopted in recent months aimed at mitigating the impact of the global fuel price volatility caused by the conflict in the Middle East. The first step will be the termination, starting today (1 July), of the diesel subsidy of R$0.35 (US$0.06) per litre. A government press release cites Brazil’s finance minister, Dario Durigan, as saying that the fuel subsidies were always intended to be temporary and the government is already evaluating the removal of other subsidies, such as a gasoline subsidy of R$0.44 per litre. The statement also cites the minister for planning and budget, Bruno Moretti, as highlighting that a recent drop in international oil prices reduces the need for subsidies and the phaseout is necessary for fiscal balance.