The Brazilian government has authorized R$ 6.6 billion, approximately $1.3 billion, in an extraordinary credit to subsidize diesel prices, a move designed to buffer the domestic economy from a renewed spike in global oil costs. President Luiz Inácio Lula da Silva signed the Provisional Measure (MP) on Wednesday, directing R$ 5.6 billion of the total toward the production and import of road-use diesel. The subsidy is calculated to grant relief of R$ 1.12 per liter of diesel, directly targeting the high cost of transportation which acts as a major driver of inflation in the Brazilian economy.