Italy’s cabinet extended a reduction in diesel excise duties through September 5, maintaining a cut of roughly €17 per liter as part of ongoing efforts to mitigate fuel costs for households and businesses. The decision, announced midweek, follows repeated rollovers since the U.S.-Iran conflict drove oil prices higher.
The extension is projected to cost the state approximately €130 million in lost revenue, according to a source familiar with the matter. Prime Minister Giorgia Meloni’s office indicated that more targeted measures may be introduced for lower-income households once the current duty cuts expire.
The government has maintained the diesel tax reduction as part of broader energy relief policies, aligning with measures introduced during periods of elevated global oil prices. The latest extension ensures continuity in support for consumers and industries reliant on diesel, though the fiscal impact underscores the ongoing strain on public finances amid volatile energy markets.
