Brazilian President Luiz Inácio Lula da Silva has introduced measures aimed at reducing fuel prices weeks before the upcoming presidential election. These measures include tax cuts on the import and sale of ethanol, gasoline, and gasoline blends (excluding aviation fuel), effective from September 10 to October 9. Additionally, a provisional measure provides a subsidy of one Brazilian real ($0.19) per liter for producers and importers of road diesel. These actions come as global oil prices, specifically Brent crude, have risen above $100 per barrel for the first time since July, following attacks on oil infrastructure and ships in the Middle East. Lula stated that the measures are intended to shield Brazilian consumers from the potential economic effects of the ongoing U.S.-Iran conflict. Brazil is a significant producer and exporter of crude oil, and its revenue from this sector has increased this year due to higher global oil prices. However, the country still needs to import refined fuels to meet domestic demand. Keeping diesel prices stable is crucial to avoid disruptions in the transportation sector and to control inflation, particularly in food prices. In 2018, a nationwide strike by truck drivers led to a sharp rise in food prices and significant economic losses. This history underscores the importance of maintaining stable fuel prices to prevent similar economic disruptions. Armando Castelar Pinheiro, an economics professor at the Federal University of Rio de Janeiro, noted that the current measures also have a strong electoral component, as they aim to benefit voters ahead of the election. According to a market analysis by Itaú BBA, diesel in Brazil is currently 28% cheaper than international prices, and gasoline is 21% cheaper. These price differences highlight the potential impact of the new measures on both consumers and the broader economy, as lower fuel costs could help ease inflationary pressures and support economic stability.