Italy’s government extended a temporary tax cut on diesel fuel by one day, pushing the measure’s expiration to Wednesday as retail prices climbed to multi-week highs.
The decree, signed by the ministries of finance and energy, follows a pattern of short-term reductions introduced to shield consumers from rising fuel costs. The extension was announced on Thursday, one day after officials had previously prolonged the tax cut through Tuesday.
The government initially reduced diesel prices at the pump by €0.17 per liter in July, a response to elevated oil prices driven by geopolitical tensions in the Middle East. Weekend data released by the transport ministry showed diesel averaging €2.203 per liter on Italy’s highway network, while unleaded fuel stood at €2.087 per liter.
Prime Minister Giorgia Meloni has faced political pressure to ease the burden of higher fuel costs ahead of a general election expected next year. The government has relied on temporary tax cuts rather than structural policy changes to manage retail prices.
The latest extension underscores the volatility in European energy markets, where diesel demand and supply disruptions have contributed to sustained price pressures despite the government’s interventions.
