In response to escalating diesel prices, Italian Prime Minister Giorgia Meloni announced that the government is considering a flexible mechanism to reduce fuel taxes. This proposal comes as energy costs continue to burden households and businesses, following the expiration of a temporary diesel tax reduction earlier this week.
The expired measure had brought diesel duties down by 6.1 cents per litre, but its end led to a rise in fuel prices. Eni, Italy’s largest energy company, adjusted its maximum diesel price at petrol stations from €2.19 to €2.25 per litre, while the price cap for unleaded petrol remained steady at €1.99 per litre.
To mitigate the impact of these rising costs, the government has urged energy companies and fuel retailers to maintain temporary price caps. The proposed mobile excise-duty mechanism would link fuel tax reductions to the additional VAT revenue generated when fuel prices increase, allowing the government to use part of this revenue to offset higher fuel costs.
Prime Minister Meloni disclosed that the government has accumulated approximately €170 million since September, which could be allocated for further measures. Officials are currently evaluating whether to deploy these funds immediately or reserve them for future needs.
The government plans to closely monitor the effectiveness of current fuel price caps in containing prices before determining the next course of action. This ongoing assessment will help decide whether to implement further interventions to support consumers facing increased fuel expenses.