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Italy Extends 17‑Cent Diesel Tax Cut to 25 August

Funded by roughly €245 million in ministry spending cuts, the government says the accise mobili extra‑VAT mechanism may be reactivated on August 25 to decide any further relief.

Overview

  • The Consiglio dei Ministri approved the 17‑cent per‑litre excise cut on diesel through 25 August at a meeting on Tuesday, with officials saying the move covers the peak summer travel period.
  • Retail diesel averages around €2.08–€2.10 per litre and petrol is near €1.995–€1.999 per litre, leaving much of the fiscal discount absorbed by higher pump prices.
  • Market pressures specific to diesel — refinery bottlenecks, tight stocks and supply tensions — plus recent recommended price increases by major oil firms have kept diesel premiums high despite the cut.
  • Business groups and consumer associations say the measure is insufficient and are pressing for broader or targeted help, while some ministers and MPs propose one‑off revenue options such as taxing bank profits or windfalls.
  • Officials warn fiscal room is limited after more than €2 billion spent on fuel measures since March, and the accise mobili route depends on extra‑VAT receipts from July before further automatic relief can be applied.