Italy is considering cutting fuel excise duties using higher-than-expected value-added tax revenues triggered by rising pump prices, the prime minister said, as businesses warned the conflict in the Middle East could sharply raise energy costs.
Excise duties account for a large share of the pump price in Italy and are levied per litre, not as a percentage of the total price like VAT.
- Giorgia Meloni said the government was studying possible activation of so-called “mobile excise duties,” a mechanism that allows the state to use extra VAT receipts generated by higher fuel prices to reduce excise taxes on petrol and diesel.
- “The activation has been under review for several days by the economy ministry,” Meloni said in a video message late on Saturday.
- Italy’s CGIA, a business lobby representing artisans, small and micro‑enterprises, estimated that higher energy bills linked to the conflict could cost Italian companies nearly 10 billion euros ($11.62 billion).
- Consumer group Unione Nazionale Consumatori urged an immediate 10% cut in fuel excise duties.
- Small hauliers’ group Ruote Libere warned that a 37% rise per litre could add more than 11,000 euros a year in costs for each truck.
- Farmers’ group CIA said unjustified fuel price hikes, with agricultural diesel up 30–35%, risk farmers operating at a loss if they don’t receive national and EU support.
