Italy extends diesel excise discount for one more week, hints at last general cut

Italy's Council of Ministers has approved a new fuel decree-law extending, by one week until Thursday 17 September, a discount on diesel prices available to all consumers. The excise duty has been cut by 14 cents per litre, which, once the reduced VAT impact is factored in, translates into pump prices roughly 17 cents per litre lower.

The new decree is expected to cost the state around 80 million euros. Government sources have suggested this could be the last time such a broad, universal intervention benefiting every consumer is used.

Targeted measures may follow

Should the government decide to act again on fuel prices after 17 September, it says it would do so through "targeted" measures aimed specifically at low-income households and people who rely on fuel for their work, rather than a blanket discount for everyone.

According to the newspaper Corriere della Sera, the government has spent around 2.6 billion euros since March on repeated excise duty cuts and on support for the road haulage sector, including a tax credit for fuel purchases.

Within the ruling coalition, opinions differ on how to fund any future measures: the League favours a tax on windfall profits made by oil companies, while coalition partner Forza Italia opposes the idea.