Italy has extended its temporary cut in diesel excise duties by another week, keeping the fuel tax reduction in place until September 17 as the government continues to respond to rising energy costs linked to the conflict in the Middle East.
The Cabinet approved the extension on Thursday, September 10, just hours before the previous measure was due to expire. The reduction remains worth 17 cents per litre, providing some relief to motorists and businesses facing sharply higher diesel prices.
Government Extends the Fuel Relief
The latest extension continues a measure that has already been renewed several times since it was first introduced during the summer.
The 17-cent reduction combines a 14-cent cut in excise duty with a further 3-cent reduction through VAT, according to the government's earlier measures. The discount applies to diesel but not to regular unleaded petrol.
The government has used the measure to soften the impact of higher fuel prices on households, transport companies and other businesses.
Relief Comes as Diesel Prices Stay High
The need for another extension reflects the continued pressure on fuel prices.
Earlier this month, Italy's average self-service diesel price had risen to around €2.16 per litre, while petrol was also above €2 per litre. The tax reduction has helped limit the impact on consumers, but has not been enough to prevent diesel prices from remaining at elevated levels.
The increase has been linked in part to higher global energy prices following the escalation of conflict in the Persian Gulf and disruptions to oil supplies.
Likely to Be the Last Broad Discount
The Italian government has indicated that the latest extension is expected to be the last general fuel discount available to all motorists.
Prime Minister Giorgia Meloni previously said the government wanted to move away from broad subsidies and instead introduce more targeted support for people and businesses most affected by high energy costs.
The approach reflects concerns about the cost of repeatedly subsidising fuel for everyone, including people who may not need financial assistance.
Transport Sector Could Receive Targeted Support
One group expected to remain a particular focus is the road transport sector, which has been heavily affected by high diesel prices.
The government has previously extended a tax credit for road-haulage companies alongside the diesel excise reduction. Future measures are expected to concentrate more heavily on vulnerable households and professional transport operators rather than offering a nationwide discount.
This shift could allow Rome to provide support where fuel costs have the greatest economic impact while reducing the overall cost of broad-based subsidies.
Energy Prices Put Pressure on Government Finances
Italy has already spent billions of euros on fuel-related relief measures this year.
The government has used additional tax revenues and arrangements with major energy companies to help finance the reductions. Deputy Prime Minister Antonio Tajani recently said large energy companies should contribute to public finances during the current period of high energy costs.
The repeated extensions underline the difficulty governments across Europe face in protecting consumers while also keeping public finances under control.
What Happens After September 17?
The latest measure will remain in place until Thursday, September 17. After that, Italy is expected to move toward targeted assistance rather than another nationwide reduction in diesel taxes.
For Italian motorists, the extension offers another week of relief at the pump. But it also signals a change in government policy: instead of continuing general fuel discounts indefinitely, Rome is preparing to focus its resources on those most exposed to the continuing rise in energy costs.
With global oil prices still elevated, the pressure on Italian households, businesses and transport operators is unlikely to disappear quickly. The key question now is whether targeted measures can provide enough support once the broad diesel discount finally ends.
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