Brazil, India and Austria revise fuel policies amid oil turmoil

Monday 01 June 2026 - 07:19

By: Dakir Madiha

Brazil, India and Austria revise fuel policies amid oil turmoil

Governments in Brazil, India and Austria have introduced new measures aimed at limiting the impact of oil market volatility linked to the conflict involving Iran, as energy prices continue to face pressure from geopolitical tensions entering a third month.

Brazil extended its emergency fuel support package for an additional two months, pushing the expiration date from May 31 to July 31, 2026. Under the revised framework, domestic refiners and fuel importers will continue receiving a diesel subsidy of 1.12 reais per liter beginning June 1. Authorities also merged two separate subsidy programs launched earlier this year into a single mechanism designed to maintain fuel price stability across the country.

The Ministry of Finance introduced a new compensation scheme for diesel producers and importers to offset tax-related costs. The measure replaces an earlier exemption from PIS and Cofins taxes while preserving the same financial benefit valued at 0.35 real per liter. Federal support for liquefied petroleum gas was also strengthened, with budget allocations increasing from 330 million to 660 million reais. The extension reflects Brazil’s broader strategy to shield households and businesses from energy price shocks that have affected global markets since March.

India adopted a different approach by reducing export duties on gasoline, diesel and jet fuel for the two-week period beginning June 1. The additional special excise duty on gasoline exports was lowered to 1.5 rupees per liter, while diesel export duties fell to 13.5 rupees per liter and jet fuel duties to 9.5 rupees per liter. The reductions mark a significant decline from rates established in mid-May, when export taxes stood at 3 rupees for gasoline, 16.5 rupees for diesel and 16 rupees for jet fuel.

Indian authorities noted that export duties are reviewed every two weeks based on average international crude oil and refined product prices. Domestic excise taxes on gasoline and diesel remain unchanged, meaning consumers are unlikely to experience immediate changes at fuel stations. The move is intended primarily to adjust trade competitiveness while responding to fluctuations in global energy markets.

Austria meanwhile announced a further rollback of its fuel price relief mechanism known as the Spritpreisbremse. Beginning June 1, the government will fully eliminate a retailer margin reduction worth 2.5 euro cents per liter, while reducing the remaining tax benefit to 1.7 euro cents per liter. The measure was initially introduced in March to limit the impact of rising fuel costs associated with tensions involving Iran and has been gradually scaled back since April.

Although the three countries have chosen different policy paths, their actions reflect a common challenge. Persistent uncertainty in global oil markets continues to influence national energy strategies as governments seek to balance consumer protection, fiscal costs and market stability during an extended period of geopolitical risk.