Italy has introduced a temporary reduction in fuel duties to curb rising prices linked to the economic fallout from the Iran war. The measure took effect immediately after government approval.
The cabinet led by Prime Minister Giorgia Meloni approved a decree on Wednesday introducing a 25-cent cut in fuel excise duties. The measure came into force on Thursday following its publication in the official gazette and will remain in place for 20 days.
The government said the move is designed to ease pressure on households and businesses facing higher transport and energy costs. The intervention, estimated to cost around one billion euros, may be extended if the international situation continues to affect fuel markets.
Deputy Prime Minister Matteo Salvini described the measure as “substantial aid, obviously temporary”. He added that the cut should bring Italian fuel prices below those seen in countries such as France, Germany and Spain.
Alongside the tax reduction, the decree includes measures aimed at preventing speculative price increases. Authorities will introduce enhanced monitoring across the fuel supply chain, with oversight involving the price watchdog known as “Mr Prezzi”, the Guardia di Finanza and the competition authority. Legal action may be pursued in cases of price gouging.
Support for lower-income households
The government has also strengthened support for lower-income households. Funding for the “social card” scheme will increase from €500 million to €630 million in 2026, with an additional €130 million allocation aimed at offsetting rising living costs, including fuel.
Specific support is предусмотрed for key sectors affected by fuel prices. Road haulage companies will receive a 28% tax credit on diesel purchases, while additional assistance is expected for the fishing industry.
The decree follows discussions between Meloni and Economy Minister Giancarlo Giorgetti on how to mitigate the impact of rising fuel costs. The talks also addressed concerns that some companies could exploit the geopolitical situation to introduce unjustified price increases.
The government has indicated it is prepared to take further action if necessary, including potential punitive measures against firms found to be engaging in speculative pricing.
