Lula Pushes Workweek Reform and Expands Fuel Subsidies Ahead of 2026 Election Runoff

President Luiz Inácio Lula da Silva has intensified his economic campaign strategy with significant policy announcements just days ahead of Brazil’s October 25th presidential runoff. In Ceilândia, near Brasília, Lula reaffirmed his support for a Proposed Constitutional Amendment aimed at abolishing the 6x1 work schedule—cutting the workweek to five days with two days off. Calling it a march "that wants to reduce the workweek," he framed it as part of his broader agenda to defend workers' rights, contrasting it sharply with past governance he associated with fascism and financial elites such as former banker Daniel Vorcaro.

Simultaneously, the government unveiled expanded fuel tax exemptions and subsidies intended to alleviate rising costs from international oil price surges. The federal tax exemption on gasoline rose from R$ 0.63 to R$ 0.89 per liter, eliminating PIS/Pasep, Cofins, and Cide-Combustíveis taxes for 30 days, costing an estimated R$ 5.2 billion. Ethanol subsidies increased, and imported diesel received an additional R$ 1.40 per liter subsidy on top of the existing R$ 2.12. To support these measures, an extraordinary credit of R$ 7.52 billion was allocated to the Ministry of Mines and Energy to fund fuel production and import programs.

Planning Minister Bruno Moretti linked these changes to rising Brent crude prices, climbing above $100 amid Middle Eastern conflicts, while Finance Minister Dario Durigan emphasized the use of increased oil revenues to offset fuel price impacts. Lula’s messaging at campaign events highlighted national sovereignty and opposition to foreign influence, underscoring his commitment to ensuring Brazil’s wealth benefits its people.

These intertwined political and economic measures reflect Lula’s tactical push to consolidate support by addressing immediate cost-of-living concerns and projecting a vision distinct from his opponents before the critical election runoff.