A Brazilian court has upheld a previous decision to suspend a controversial oil export tax for several major international energy firms, delivering a setback to the government’s efforts to collect additional revenue from the sector.
According to a ruling dated April 9, 2026, the court denied an appeal from the Brazilian government, effectively keeping in place a tax exemption for the following companies:
- Shell
- TotalEnergies
- Equinor
- Repsol Sinopec
- Petrogal (Galp)
Key Details of the Dispute
- The Tax: The government had introduced a 12% levy on crude oil exports via a provisional measure (MP 1.340/2026) in March. The tax was intended to generate revenue to offset diesel subsidies and fuel price stabilization measures amid global price volatility.
- The Court’s Reasoning: The presiding judge in Rio de Janeiro previously ruled that the tax appeared to be “merely revenue-raising” rather than serving a traditional regulatory purpose. The court suggested the sudden imposition of the 12% rate violated constitutional principles regarding tax stability and legal certainty.
- Petrobras Excluded: The ruling specifically applies to the international majors listed above. Brazil’s state-run oil giant, Petrobras, which is the country’s largest exporter, is not covered by this suspension and remains subject to the fiscal measure.
Industry Impact
The decision is a significant victory for foreign oil companies, which argued that the tax penalized their operations and created an unstable investment environment. Industry groups had warned that such unexpected fiscal changes increase “country risk” and could jeopardize long-term investments in Brazil’s oil and gas sector.
The Brazilian government is expected to continue its legal efforts to reinstate the tax, arguing that it is a necessary contribution from companies benefiting from high global energy prices.