Brazil’s government on Thursday extended a 12% tax on crude oil exports for a further 60 days, keeping in place a measure first imposed in March when oil prices spiked amid tensions related to the Iran war. The executive management committee of the foreign trade chamber Camex, commonly referred to as Gecex, approved the extension and said it will revisit the temporary levy in 30 days.
Officials had been considering cutting or removing the export charge because global oil prices have eased, but they opted to keep the tax unchanged for now. Gecex described the move as temporary and said it was adopted "in light of developments in the international scenario and their impacts on the oil and fuel markets."
Brent crude futures were trading around $76 a barrel on Thursday. Prices rose on Wednesday to their highest level since June 22 as tensions in the Middle East increased, though current levels remain well below the more than $118 a barrel reached shortly after the war began in late February.
The administration of President Luiz Inacio Lula da Silva has said proceeds from the export tax will be used to finance measures aimed at shielding consumers from inflation linked to the war. The government previously announced a package of fuel subsidies covering diesel, gasoline, aviation fuel and cooking gas.
After the decline in Brent prices, the government began what it described as a gradual rollback of those tax benefits last week. Separately, Finance Minister Dario Durigan said on Thursday that a decision on eliminating a gasoline subsidy has been postponed until next week.
The tax extension and the staggered approach to removing subsidies reflect the government's continued attention to international price movements and domestic consumer relief programs. Gecex’s commitment to a 30-day review creates a near-term checkpoint for policy adjustments if market conditions change.