Italy extends fuel excise duty cut to July 3, halves diesel discount

The Italian government has extended reduced excise duties on fuels, maintaining the measure until July 3. This marks the fifth extension since the discounts were first introduced on March 18. The latest decree, published in the Official Gazette, confirms the continuation of these savings for consumers.

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The price of fuel is constantly falling below two euros.

However, the specifics of the extension reveal a divergence in support for different fuel types. While the excise duty cut for gasoline remains at 5 cents per liter (totaling 6.1 cents with VAT), the discount for diesel has been halved. It was previously 10 cents per liter and will now also be 5 cents, a reduction following a previous cut from 20 to 10 cents.

This decision comes as fuel prices have been steadily declining, with self-service gasoline prices hovering below 2 euros per liter and diesel just under that threshold. The government estimates the cost of this extension at nearly 150 million euros, to be covered by an increase in VAT revenue from higher prices observed in May.

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A terrible idea, an own goal.

Consumer associations have criticized the reduced discount on diesel, calling it a "terrible idea" and an "own goal." They warn that diesel prices, especially on highways, could soon exceed 2.1 euros per liter, and on regular roads, they may surpass 2 euros. Codacons estimates that the smaller discount on diesel will cost Italian motorists an additional 17.1 million euros weekly in refueling costs alone.

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will cost Italian motorists 17.1 million euros a week just in terms of higher refueling costs.