The president of Brazil, Luiz Inácio Lula da Silva, said that rising fuel prices in the country are unjustified, arguing that several measures have already been implemented to contain increases.
Speaking at the inauguration of a car factory, Lula said that hikes in gasoline and ethanol prices are unrelated to the conflict in the Middle East.
“There are opportunists at fuel stations increasing the price of gasoline and ethanol, which have nothing to do with the war in Iran, and there are those raising diesel prices even though we are providing subsidies to prevent increases,” he said.
Lula added that the Federal Police of Brazil and consumer protection agencies are actively working to target those who exploit the situation, harming citizens and truck drivers.
Read more about this topic: Iran War: Brazil doing “economic engineering” to prevent oil price spike (with video)
The Brazilian leader also criticized the ongoing conflict in the Middle East, saying it is unfair for other countries to bear the consequences of tensions involving the United States and Israel against Iran.
“Iran is 15,000 kilometers away from Brazil. Why should they wage war there and we pay the price here?” he said, noting that Brazil imports around 30% of its diesel.
Meanwhile, the Central Bank of Brazil maintained its forecast of 1.6% GDP growth for 2026, though it warned of increased uncertainty due to the effects of the Middle East conflict.
According to the central bank, if the conflict persists, it could act as a negative supply shock—driving up inflation and slowing economic growth—although some sectors, particularly oil, could benefit.
