Italy lets fuel duty discount lapse as Europe weighs joint responses
Italy's government did not renew its fuel excise cut on 7 October, and pump prices rose immediately. Other European countries are cushioning fuel costs with a variety of uncoordinated measures.
Italian motorists woke on Wednesday 7 October to an unwelcome surprise: the cut in fuel excise duty, which in previous months had partly limited the rise in diesel prices, was not renewed. Pump prices went up straight away.
A shrinking discount
By the time it expired at midnight, the discount was worth only 6.1 cents per litre, having declined from its original level. The Meloni government had suggested replacing it with a tax rebate system financed without burdening public finances. That would require a new decree involving the ministries of Economy and Energy Security, but no new measure has been approved so far. Oil company Eni, 33% owned by the Ministry of Economy and Finance and by Cassa Depositi e Prestiti, said that letting the discount lapse in practice cancels the effect of the temporary fuel price cap it had announced days earlier.
Ideas at EU level
The G7 decided to release 100 million barrels of crude from national reserves to boost market supply. European Commission president Ursula von der Leyen has proposed joint purchases and wants to give exporters an extra year of flexibility on rules requiring suppliers to declare greenhouse gas emissions tied to production, a duty that could be pushed back to 2028. A possible ad hoc tax on the extra profits of oil and gas companies is also being discussed; Economy Minister Giancarlo Giorgetti supports it and other European governments view it favourably.
Ahead of the European Council meeting on 15 and 16 October, Giorgia Meloni called for clear and concrete political guidance from Europe to cut energy costs and protect industrial competitiveness. She referred to a joint contribution with Czech prime minister Andrej Babiš proposing to ease ETS-related costs and postpone the entry into force of ETS2 further.
Measures elsewhere
France has extended and broadened support for people who commute long distances: 5.5 million beneficiaries will receive 100 euros plus a pump discount, and employer aid of up to 1,000 euros will be tax-free. The package is expected to cost 450 million euros. In Germany, a 17-cent-per-litre excise cut has applied since 1 October until year-end. Spain keeps its 20-cent discount in October, reducing it to 13 cents in November and 6 cents in December. In Belgium, the diesel price cap hit a record €2.501 per litre at the end of September, while in the United Kingdom the pump price reached an all-time high of 199.52 pence per litre.
