Oil giants rush to help Italy’s Meloni curb energy costs with fuel price caps

Italian Prime Minister Giorgia Meloni is seeking assistance from oil companies to curb energy costs in the country. Kuwaiti energy firm Q8 and Italy's Eni, along with Azerbaijan's SOCAR, have announced a price cap on petrol pump prices in Italy, starting from October 1. This move comes as Meloni's government prepares its 2027 budget, set to be presented in October, ahead of a national election next year.

These price caps are seen as a strategy to win favor with the government and prevent the implementation of a windfall tax on energy companies' profits, a proposal made by economy minister Giancarlo Giorgetti and other politicians. Meloni expressed gratitude to Kuwait and the Q8 group for their support, stating that the initiative aims to benefit motorists, although the specific price cap has not been disclosed.

Meanwhile, SOCAR and Eni have been capping diesel prices at €2.19 per litre and petrol at €1.99 per litre since Monday. Such actions have been interpreted by market analysts as a bid to mitigate the risk of new taxes on windfall profits for energy companies. However, industry ministry data indicates that the price caps have thus far had a minimal impact on reducing average fuel prices.