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- October 13, 202618°
- BIST10012,148-0.02%
- USD49.34+0.24%
- EUR55.21-0.01%
- GOLD4,214.10+0.56%
- INTEREST37.00%-1.00
- BITCOIN83,908+2.63%
- October 13, 202618°
Italy extends diesel tax cut through September 5
The Italian government has extended the excise-duty cut on diesel through September 5. Extending the reduction of about 17 euro cents per liter is expected to cost public revenues an estimated 130 million euros.
The Italian government has extended the excise-duty cut on diesel through September 5. The measure aims to support households and businesses after rising oil prices increased fuel costs.
The reduction will apply only to diesel and will remain at approximately 17 euro cents per liter. The extension is expected to result in an estimated 130 million-euro loss in public revenues.
Diesel prices put pressure on businesses
Rising fuel prices have become a significant cost for transport companies and farmers, which rely heavily on diesel. Increasing energy expenses have intensified pressure on Prime Minister Giorgia Meloni’s government, which is seeking to protect purchasing power and support economic growth.
The government has extended fuel-tax cuts several times since the conflict between the United States and Iran, which began in February, drove up crude oil prices. Under the latest measure, the reduction will continue to apply only to diesel, not gasoline.
Cost pressures ahead of elections
Fuel prices also carry political significance ahead of next year’s parliamentary elections. Opposition parties have accused the government of failing to address the widening impact of the cost-of-living crisis, while business representatives warned that high fuel prices could weaken competitiveness.
Meloni’s office said that, when the current excise-duty cuts expire, the government could shift to more targeted support for low-income households instead of broad tax reductions.
Forecast for energy costs
The Italian Confederation of Crafts and Small and Medium-Sized Enterprises (CNA) estimated that the period it described as the Iran war could cost Italy approximately 12 billion euros. The organization said that fuel, electricity and natural-gas expenses would increase by about 11.6 billion euros between March 1 and August 31 compared with levels before February 28.
According to CNA’s calculations, more than half of these additional costs will stem from transportation expenses. The additional cost of gasoline and diesel over the six-month period was estimated at approximately 5.8 billion euros.
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