Italy weighs fuel-tax cuts as firms warn of energy price surge from Middle East war
721 Min Read
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.
