Italy Extends Fuel Tax Cut to September, Plans Income-Based Support

The Italian government has approved a decree extending the reduction of excise taxes on fuel until September 5. This measure, aimed at mitigating the impact of high fuel prices, is expected to cost approximately 130 million euros. The decision was made during a Council of Ministers meeting, with government sources confirming the prorogation.

Following the expiration of the current tax cut, the government plans to shift to a new strategy of "selective support based on income." This approach, foreshadowed by Palazzo Chigi sources, aims to provide assistance more directly to households most affected by rising fuel costs. Details of these income-based measures are still being finalized and will be evaluated in the coming days.

Meanwhile, fuel prices continue to climb. According to the Ministry of Enterprises and Made in Italy, the average price for self-service gasoline on national roads reached 2.017 euros per liter on August 23, a slight increase from the previous day. Diesel prices were at 2.137 euros per liter. On the highway network, self-service prices were even higher, with gasoline averaging 2.092 euros per liter and diesel at 2.208 euros per liter.

Confesercenti, an Italian trade association, estimates that the high fuel costs this summer have added approximately 1.8 billion euros to Italians' holiday expenses compared to the previous year. This increase, impacting mobility and tourism consumption during the peak vacation months of July and August, represents a 21% rise in refueling costs for motorists. The association noted that without public intervention, the burden would have been even greater.

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In the meantime, we will extend the diesel discount, and then we are thinking longer term. I would like to do something more continuous, something more substantial, and that requires money.