Fuel prices: Price cap instead of tax discounts: Why oil companies sell gasoline below market price in Italy
Two corporations are voluntarily giving themselves a fuel cap for petrol and diesel - and possibly saving themselves a windfall tax. For the Italian government, this is a stroke of luck.
In Italien, oil companies Eni and IP have announced voluntary price caps on gasoline and diesel, setting a maximum price of €1.99 per liter for gasoline and €2.19 per liter for diesel at their stations. The price ceiling is set to take effect by the end of October and could be extended until the end of the year. Eni and IP control about 40% of the country's service stations.
Energy expert Simone Tagliapietra from the Brussels-based Bruegel think tank suggested that Eni implemented the measure to avoid a new tax on excess profits, as it is cheaper for the company. The Italian government praised the move as a "praiseworthy act of consideration for Italian families" and aid for Italian families. Analysts from Equita describe the voluntary price ceiling as "economically slightly negative" but "moderately positive from a regulatory and political standpoint."
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
