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The Italian government's Ministry of Economy, led by Minister Giancarlo Giorgetti, announced on Friday the extension of the fuel decree, which has reduced special taxes until May 1st. During a press conference, Giorgetti also revealed a specific intervention for agricultural operations, which will see a 20% fiscal credit already adopted for the fishing industry.
These changes also impact exports, particularly Simest, a company from the CDP Group dedicated to internationalizing Italian businesses. The cost of this measure is estimated at around 500 million euros, of which 200 million will be self-financed through increased VAT collections, while 300 million are recovered resources from unused CO2 ETS allocations, without affecting funds originally designated for energy consumer relief.
Concerning the ongoing war in the Middle East, Giorgetti warned that if the situation does not change, the European Union's deficit limits and 3% threshold will be unavoidable. Italy was close to lowering its deficit below 3% of GDP and exiting the EU's procedure, gaining more flexibility in spending restrictions. The fuel decree extends the discount at fuel pumps introduced on March 18th, with Italians now paying 25 cents less per liter of diesel and gasoline, and a 12-cent discount on LPG refueling.
The first phase cost approximately 528 million euros. The decree also includes a 28% fiscal credit on gasoline purchases for road transporters and fishermen. Since the measure's implementation, prices have continued to rise, in line with the global oil price trend, while tensions and confrontations between the United States, Israel, and Iran over the Strait of Hormuz remain unresolved, and the crucial passage remains blocked.
According to the Ministry of Environment's monitoring, average prices have reached 1.733 euros per liter for gasoline and 2.032 euros for diesel as of last week, which is 6 cents more per liter for unleaded gasoline and 31 cents more for diesel compared to the period before the U.S. and Israel's attack on Iran. Consumer protection association Codacons criticized the extension, stating that it falls short of returning fuel prices to acceptable levels.
Prices for diesel in service stations have reached 2.134 euros per liter in Bolzano, Calabria (2.116 euros/litro), Friuli Venezia Giulia (2.113 euros/litro), Liguria and Lombardy (2.108 euros/litro), Apulia and Valle d'Aosta (2.104 euros/litro), Basilicata (2.102 euros/litro), and Piedmont (2.100 euros/litro). On highways, diesel is now 2.137 euros per liter, and gasoline is 1.822 euros per liter, with Codacons noting that the discount on fuel taxes has been completely negated by recent pump price increases.
They believe the government should have provided a stronger fiscal discount to bring diesel prices back to acceptable levels.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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