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Italy’s Diesel Prices Edge Down After Government Pressure

A temporary excise cut of about €0.24 per liter costs roughly €1 billion a month, making any extension uncertain.

Overview

  • Official data Saturday put average diesel at €2.166 per liter on roads and €2.193 on motorways, after weeks of spikes from a diesel tax change and Middle East supply fears.
  • The government, which summoned Eni, IP, Q8 and Tamoil on Thursday, told them to cut pump prices when oil falls and warned it could tax extra profits.
  • Industry minister Adolfo Urso said Saturday that companies heeded the call and prices have eased over the past two days.
  • Consumer groups say prices did not track the sharp drop in crude and estimate drivers pay about €150 million more per week, with roughly €88 million flowing to the fuel supply chain and €61 million to the state.
  • Ministers say the excise cut costs about €1 billion per month, so any extension after May 1 would need funding that does not raise public debt.