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Italy Extends Fuel Excise Cut to May 22

The government is pushing Brussels for more leeway.

Overview

  • The ministerial decree, published Saturday, keeps discounted fuel taxes in place through May 22.
  • The cut remains differentiated at 24.4 cents per liter for diesel, 6.1 cents for gasoline, and 12 cents for LNG, easing pump prices that include a fixed-per-liter excise tax.
  • Funding shifted from roughly €146.5 million in Antitrust fines for May 2–10 to €191.2 million in extra VAT for May 11–22 because the additional VAT is tallied after the first week of each month.
  • This two-step setup activates Italy’s “mobile excise” tool, which adjusts tax levels based on recent revenue, and it explains why a late‑April decree-law was followed by a separate ministerial decree.
  • Without another measure after May 22, market projections suggest pump prices would jump from current levels to about €2.00 per liter for gasoline and nearly €2.30 for diesel, a squeeze that ministers cite as they seek EU fiscal flexibility and as reports tally the total bill since March at about €1.2–€2 billion.