Italy's government is extending the 17-cent per liter excise duty and VAT cut on diesel until September 10th. This extension, implemented through an interministerial decree, is financed by additional August VAT revenues. While the current reduction expires on September 5th, the government aims to gain a few extra days to finalize more targeted support measures for fuel costs.
The national average for diesel is nearing 2.15 euros per liter, with some areas like Bolzano and Calabria seeing prices approach 2.2 euros. Petrol prices, without any current discounts, are also rising, with a national average just under 2.04 euros per liter, the highest since 2022. The cost of these fuel subsidies has been substantial, with an estimated public expenditure of approximately 10 million euros per day, totaling over 2 billion euros in six months.
Following this short extension, the government plans to shift from blanket discounts to more selective measures. These could include fuel cards for low-income households, specific aid for the road haulage sector, and fuel vouchers as employee fringe benefits. Deputy Prime Minister Matteo Salvini has advocated for including self-employed workers, such as truck drivers, farmers, and artisans, in these protections, arguing against solely relying on ISEE for beneficiary selection. There is also discussion about potentially taxing windfall profits of energy companies, though this faces opposition and concerns about its impact on investments.
