Italy Extends Diesel Excise Discount Until September 5

The Italian government has approved a decree extending the 17 cent per liter excise duty discount on diesel until September 5. The measure is intended to mitigate rising fuel costs during the peak summer travel period and is estimated to cost approximately 130 million euros. Following this deadline, the government plans to implement new support measures that will be selective based on income levels.

Funding for the extension will come from a new mechanism involving advance tax payments on dividends from large energy groups, likely including Eni. This arrangement was reportedly reached in agreement with the involved groups and is distinct from the issue of windfall profits.

Political reactions to the measure vary. Center leaning coverage highlights a sharp divide within the governing coalition and from the opposition. The Lega party suggests taxing windfall profits from the banking sector to further reduce excise duties, while Forza Italia has strongly opposed such a move, describing it as reminiscent of the Soviet Union. Opposition leaders from the M5s and PD have criticized the discount as an insignificant gesture, arguing instead for the taxation of windfall profits to support citizens.

Center right leaning coverage focuses more on the immediate economic data, noting that average self service prices currently stand at 2.017 euros for gasoline and 2.137 euros for diesel, with higher prices recorded on the motorway network.