Brazil: Tax-free diesel import, taxed crude oil export

On the 12th, the Brazilian government announced the exemption of import and sales taxes on diesel, while imposing a 12% export tax on crude oil, in response to the spillover risks from the Middle East situation. Brazilian President Lula signed a presidential decree on the same day, reducing the tax rates on diesel imports and sales to zero, and providing subsidies to diesel producers and importers. Lula stated in an interview that these measures aim to alleviate the inflation pressures brought by the significant increase in international oil prices to Brazil, and prevent high oil prices from affecting people's livelihoods. The Brazilian government also announced on the same day that a 12% export tax would be levied on crude oil exports to compensate for diesel subsidies and stabilize the domestic refining industry.