Italian Prime Minister Giorgia Meloni announced that the government is exploring a flexible mechanism to lower fuel duties in response to rising energy costs affecting households and businesses. This consideration comes as a temporary diesel tax reduction, which had been gradually phased out, expired earlier this week.
Prior to its expiration, the temporary measure had reduced diesel duties by 6.1 cents per litre. Following the end of this reduction, fuel prices saw an increase, with Eni, a major energy company, raising the maximum diesel price at its petrol stations from €2.19 to €2.25 per litre, while unleaded petrol remained capped 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 proposed mobile excise-duty mechanism would link fuel tax reductions to the additional VAT revenue that is generated when fuel prices rise. This system would allow the government to use a portion of the increased revenue to offset higher fuel costs. Prime Minister Meloni revealed that since September, the government has accumulated approximately €170 million, which could be used for further measures to address the rising costs.
Officials are currently evaluating whether to deploy these funds immediately or reserve them for future use. Additionally, the government plans to monitor the effectiveness of the current fuel price caps in controlling prices before making any further decisions.