Italy extended a temporary cut to diesel taxes by one day on Thursday, as fuel prices remain elevated following the Middle East conflict-driven surge in oil costs. The decree, signed by the ministries of finance and energy, pushes the tax reduction measure through Tuesday.
The government initially slashed diesel prices at service stations by €0.17 per liter in July, a move aimed at cushioning consumers from higher energy costs. Government data released Sunday showed diesel on Italy’s highway network priced at €2.203 per liter, while regular gasoline was listed at €2.087 per liter.
The tax cut was first implemented in response to the oil price spike, which followed geopolitical tensions in the Middle East. Prime Minister Giorgia Meloni faces mounting political pressure to shield households from rising fuel expenses ahead of general elections scheduled for next year.
Authorities had previously extended the measure until Wednesday, according to a document obtained by Bloomberg News. The latest extension underscores the government’s efforts to balance fiscal policy with voter sentiment amid persistent inflationary pressures.
