Petrobras has temporarily suspended all export sales of marine gas oil (MGO) and low-sulphur marine gas oil (LSMGO) following the Brazilian government’s introduction of a 50% tax on diesel oil exports, the company announced on 12 March.

The new legislation, enacted by the Brazilian government on 12 March, imposes the levy on all diesel oil products, including marine fuels intended for export markets.

According to the company’s announcement, the suspension will remain in place “until a full assessment of the impacts of this measure on our operations and commercial arrangements has been completed.”

For sales already concluded but not yet delivered, Petrobras said the export tax will be incorporated into the final price in accordance with its general terms and conditions for marine fuel sales, which state that “any applicable taxes, duties, or governmental charges shall be fully passed through to the buyers.”

Buyers who do not agree to the inclusion of the tax may cancel their transactions by formally notifying Petrobras through their designated account representative, the company stated.

The export tax does not apply to vessels operating under cabotage voyages, though other taxes will apply to such operations, according to the announcement.

Petrobras Bunkering, the marine fuels division of the Brazilian state-controlled oil company, did not provide a timeline for when export sales might resume.