Italy: Meloni government extends fuel decree, excise duty cuts to 1 May

The Italian government's new fuel decree, extending special tax cuts, will remain in effect until May 1, according to Italian Economy Minister Giancarlo Giorgetti. The tax cuts, first announced on March 18, were originally set to expire on April 7. Giorgetti highlighted a targeted intervention for agricultural operations, extending the 20% tax credit already granted to the fishing industry.

The new changes also impact exports, particularly Simest, a company in the CDP Group dedicated to internationalizing Italian businesses. The cost of these measures is estimated at around 500 million euros, with 200 million euros covered by increased VAT revenue and 300 million euros recovered from unused CO2 ETS allocations without disrupting funds originally allocated for energy consumption relief.

The minister also mentioned that if the Middle East conflict continues, the European Union's deficit limits and 3% threshold may be waived. The fuel decree extends the discount at fuel pumps, with Italians now paying 25 cents less per liter for diesel and gasoline, and a 12-cent discount for LPG refueling. The first phase of the decree cost around 528 million euros.

The decree also includes a 28% tax credit for road transport and fishing industry purchases of gasoline. Since its implementation, prices have continued to rise in line with petroleum price trends, despite tensions and confrontations in the Middle East between the United States and Israel over Iran, and the blocked Ormuz Strait, through which about 20% of global oil passes.

According to the Ministry of Environment's monitoring, average fuel prices have risen to 1.733 euros per liter for gasoline and 2.032 euros per liter for gasoline since the previous period before the U.S.-Israel attack on Iran. Compared to the period before the attack, gasoline prices for unleaded fuel have increased by 6 cents per liter, and gasoline prices by 31 cents per liter.