Italy extends fuel excise tax cut to July 3

The Italian government has extended the excise tax reduction on gasoline and diesel fuel, a measure aimed at easing the burden on consumers at the pump. The discount will now remain in effect until July 3, according to a decree published in the Official Gazette.

The current excise tax cuts, which began on June 7, 2026, will continue under the new decree. However, the specifics of the discount have been adjusted. While the reduction for gasoline remains at 5 cents per liter, the excise tax cut for diesel fuel has been halved from its previous level.

Previously, diesel benefited from a 10-cent per liter reduction (12.2 cents including VAT). Under the new measure, this discount is reduced to 5 cents per liter (6.1 cents including VAT). This adjustment means diesel consumers will see a smaller price break compared to the previous period.

The financial coverage for this extension amounts to just under 150 million euros. This funding is derived from the increased value-added tax (VAT) revenue collected between May 1 and May 31, 2026. The decree specifies that "The lower revenues resulting from" the extension will be covered "with a portion, equal to 149.4 million euros, of the increased revenue obtained in the period from May 1 to May 31, 2026 in relation to periodic payments of value added tax."