Italian government temporarily reduces diesel tax by 17 cents per liter to curb fuel price hikes

To ease the burden of rising fuel prices, the Italian executive has approved a decree temporarily cutting the tax on diesel by 17 cents per liter.

This measure will remain in force at least until August 6. Economy Minister Giancarlo Giorgetti announced that on August 4 the government cabinet will analyze the situation to consider other potential interventions, not ruling out the possibility of action to also cap electricity and gas bills.

“We will see how the situation evolves,” Giorgetti said. For her part, Prime Minister Giorgia Meloni described the response to the price hikes as appropriate, stressing that “this is not a situation we created, but one we are forced to confront.”

According to Meloni, the rise in diesel prices particularly hits sectors like transport and agriculture, which ultimately translates into an additional cost for every household budget.

Meloni: This is not the final solution

“We are aware that this measure does not solve the problem at its root,” Meloni acknowledged. “However, it constitutes a swift and measured response, given the limited fiscal space and an international context in constant flux.”

Official Berlin had taken a similar step earlier this year, when the German parliament voted a temporary cut in fiscal burden for diesel and its derivatives, including petrol. However, that measure ended at the end of June, shortly before tensions between the United States and Iran escalated again, and this month prices have seen another sharp rise. /DW