Archive · 28 Jul 2026
Italy Cuts Diesel Tax to Ease Fuel Price Burden
Italy has decided to temporarily lower the tax on diesel by 17 euro cents per litre to help people and businesses with high fuel prices.
This change will last until August 6 and is expected to cost €125 million.
The government says it's a necessary step, but consumer groups think it's not enough because filling a standard fuel tank still costs over €100.
The government is also considering asking the European Union for permission to spend more on electricity and gas subsidies until 2028.
Italy relies on imported oil, so changes in global oil prices greatly affect the country.
Italy has temporarily cut diesel excise duty by 17 euro cents per litre until August 6.
The measure is expected to cost €125 million, funded through various public funds.
Prime Minister Giorgia Meloni described the move as a necessary short-term intervention.
Consumer groups argue the reduction is insufficient, as filling a standard fuel tank still costs over €100.
Italy is considering seeking EU approval for higher budget deficits to finance additional electricity and gas subsidies through 2028.
- Who
- Italian government, Prime Minister Giorgia Meloni, Economy Minister Giancarlo Giorgetti, consumer groups
- What
- Temporary cut in diesel excise duty by 17 euro cents per litre
- When
- Until August 6
- Where
- Italy
- Why
- To ease the burden of rising fuel prices due to global oil market volatility and tensions in West Asia
Government's Temporary Relief
Consumer Groups' Demand for More
Effectiveness of the Tax Cut
Government's Temporary Relief
The government believes the 17 euro cents per litre reduction is a necessary and responsible short-term measure to alleviate the burden of high fuel prices.
Consumer Groups' Demand for More
Consumer groups argue that the reduction is insufficient, as filling a standard 50-litre fuel tank still costs over €100.
- Measure Duration
- Until August 6
- Cost of the Measure
- €125 million
- Funding Sources
- June excise tax revenues, antitrust fines, and other public funds
- Additional Support
- Tax credits for trucking and agricultural sectors
- Potential EU Request
- Higher budget deficits through 2028 for electricity and gas subsidies