by InTrieste
The Italian government has introduced a temporary reduction in fuel taxes aimed exclusively at diesel, lowering prices by approximately 17 euro cents per liter through Aug. 6. The measure, which took effect at midnight, does not apply to gasoline.
The tax cut was approved by the Council of Ministers as part of a broader decree designed to address rising energy costs. Economy Minister Giancarlo Giorgetti said the intervention, estimated to cost about €125 million, is intended as a short-term response to recent increases in fuel prices.
The government chose to focus the measure on diesel because prices for the fuel had risen more sharply than gasoline, officials said. Funding for the initiative comes from higher-than-expected value-added tax revenues generated by increased energy prices.
The reduction consists primarily of a cut in fuel excise duties, with a smaller decrease resulting from lower value-added tax. According to consumer association Codacons, the measure could save motorists roughly €8.50 on a 50-liter tank of diesel.
Speaking to reporters on Monday, Friuli Venezia Giulia Governor Massimiliano Fedriga said the measure was an important step to help contain fuel costs and discourage market speculation. While acknowledging that international tensions had pushed up energy prices, he argued that speculation within Italy had further amplified the increases, calling the situation “unbearable” for consumers.
Despite the relief, consumer organizations criticized the decision as insufficient, arguing that fuel prices would likely remain close to €2 per litre. Opposition parties also questioned the government’s broader energy strategy, calling for more structural measures rather than temporary interventions.
Officials said the goal is to keep diesel prices below the symbolic threshold of €2 per liter, though they acknowledged that retail prices remain subject to fluctuations in global oil markets and geopolitical developments.
At the same time, international oil prices fell sharply as concerns over supply disruptions eased, contributing to declines across European stock markets. Analysts said continued volatility in energy markets could affect fuel prices in the weeks ahead, potentially limiting the long-term impact of the temporary tax cut.
