As diesel prices rise in Italy, Prime Minister Giorgia Meloni announced that the government is exploring a flexible mechanism to reduce fuel duties. This move comes as the nation grapples with increasing energy costs that are impacting households and businesses. The proposed plan aims to replace a temporary diesel tax reduction that expired this week.
The previous measure had gradually cut diesel duties, reducing them by 6.1 cents per litre until its conclusion on Tuesday. Following the expiry, energy giant Eni increased its maximum diesel price at petrol stations from €2.19 to €2.25 per litre, while the cap for unleaded petrol remained at €1.99 per litre. In response, the government has urged energy companies and fuel retailers to maintain temporary price caps to mitigate the impact on consumers.
The proposed mobile excise-duty mechanism would link fuel tax reductions to additional VAT revenue generated from rising fuel prices. This approach would enable the government to use part of the extra revenue to counteract higher fuel costs. Meloni indicated that since September, approximately €170 million has been accumulated, which could potentially fund further measures. The government is currently considering whether to deploy these funds immediately or reserve them for future use.
Officials will continue to monitor the effectiveness of fuel price caps in controlling prices before determining their next steps. This ongoing assessment will help the government decide on further interventions to support consumers facing increased fuel expenses.