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Bolsonaro Seeks Constitution Change to Pay for Fuel Voucher

  • Fuel subsidy is only one of several ideas under discussion
  • President in a tight spot as costlier fuel hits his popularity
Brazilian President Jair Bolsonaro in a ceremony at the presidential palace in Brasilia

Brazilian President Jair Bolsonaro in a ceremony at the presidential palace in Brasilia

Photographer: EVARISTO SA/AFP
Updated on

President Jair Bolsonaro plans to send congress a proposal to change the constitution and allow for diesel subsidies, part of his strategy to contain a steep rise in fuel costs that is stoking inflation and eroding his popularity just four months ahead of Brazil’s general elections.

The bill is being prepared by the economy ministry and the office of Bolsonaro’s chief of staff, who will eventually submit it to congress, according to two government officials who requested anonymity because the discussion isn’t public. It will cost government coffers between 20-25 billion reais ($4.2 billion-$5.2 billion) which will bypass the country’s spending cap rule, the people added.