The Italian government has confirmed a one-week extension for its current reduction in diesel excise duties. This tax cut of 14 cents per litre translates into a lower pump price of approximately 17 cents per litre, a figure that accounts for the reduced impact of VAT.
This latest decree-law is expected to cost the state approximately 80 million euros. According to government sources, this is intended to be the final generalized intervention of its kind, meaning future measures will no longer benefit all consumers indiscriminately. Should the government choose to intervene again on fuel prices after 17 September, it plans to implement a package of targeted measures specifically aimed at supporting low-income groups and those who rely on fuel for their professional work.
According to reporting by Corriere della Sera, the government has spent approximately 2.6 billion euros since March on repeated cuts to excise duties and support for the road haulage sector, which includes a tax credit on fuel purchases. Within the governing majority, there is ongoing disagreement regarding how to fund future measures. The League has proposed funding the next steps with a tax on the windfall profits of oil companies, a proposal that is currently opposed by Forza Italia.
