The Italian Council of Ministers approved a fuel decree extending the 17-cent diesel pump price tax cut by one week to 17 September, maintaining relief for drivers as energy costs remain a key domestic concern.
Fiscal cost and targeted relief
The measure lowers taxes by 14 cents per litre before the impact of value-added tax, delivering an effective 17-cent cut at retail fuel pumps across the country.
The one-week extension costs 80 million euros. It adds to 2.6 billion euros spent since March on fuel tax cuts and road transport support, according to Corriere della Sera.
Ministers expect this decree to serve as the final blanket fuel price intervention for all consumers. Any intervention after 17 September will focus solely on low-income households and individuals using fuel for work.
Coalition split over energy funding
Coalition allies disagree over funding future fuel support. Lega wants to finance further relief by taxing oil companies’ windfall profits. Forza Italia opposes that tax.
The policy shift marks the end of universal broad-based pump subsidies, while Rome prepares narrower social welfare mechanisms to protect vulnerable households and transport workers from future market swings.
Source: The Italian Council of Ministers
