In response to rising energy costs, Italian Prime Minister Giorgia Meloni announced that the government is considering a flexible mechanism to reduce fuel duties. This comes as households and businesses face increased financial pressure due to a recent surge in fuel prices. The proposed plan could replace a temporary diesel tax reduction that expired earlier this week, which had brought duties down by 6.1 cents per litre until its conclusion on Tuesday.
Following the expiration of the tax cut, fuel prices have seen a notable increase. Eni, one of the key energy companies, raised the maximum diesel price at its petrol stations from €2.19 to €2.25 per litre, while the cap for unleaded petrol remained at €1.99 per litre. In an effort to mitigate the impact on consumers, the government has urged energy companies and fuel retailers to maintain temporary price caps.
The envisioned mobile excise-duty mechanism would tie fuel tax reductions to the additional VAT revenue generated when fuel prices rise. This approach would allow the government to utilize part of the increased revenue to counterbalance higher fuel costs. Since September, the government has accumulated approximately €170 million, which could either be deployed immediately for consumer relief or preserved as a reserve for future needs.
Meloni emphasized the importance of continued monitoring of fuel price caps to assess their effectiveness in containing prices. The government will evaluate the situation before deciding on further steps. The administration’s cautious approach reflects the need to balance immediate consumer relief with long-term fiscal sustainability.