ROME – The Italian government is accelerating efforts to mitigate rising fuel costs, with Prime Minister Giorgia Meloni indicating consideration of a mobile excise duty system. The mechanism, which adjusts excise taxes based on fluctuations in VAT revenue linked to oil prices, is “under study,” Meloni stated, as concerns mount over the economic impact of escalating tensions in the Middle East.
Even as a new decree law was not on the agenda for today’s Council of Ministers meeting, the government is exploring ways to supplement the potential savings from mobile excise duties. Simulations suggest the system, as it stands, would yield a limited benefit – approximately 4.7 cents per liter on gasoline and 7.5 cents on diesel, assuming a Brent crude oil price of $105 per barrel. Officials are therefore seeking additional funding sources to bolster the impact of any intervention.
One possibility under discussion is leveraging the ongoing debate surrounding the “Decreto Bollette” (Decree on Bills), currently before the Chamber of Deputies. Amendments proposed by the League party, led by Matteo Salvini, align with calls from opposition parties and consumer associations to activate the mobile excise system. The Democratic Party (PD) has further suggested extending the system to natural gas prices as well.
The surge in fuel prices has prompted swift action from the Ministry of Enterprises and Made in Italy, led by Adolfo Urso. Urso convened an emergency meeting of the rapid alert commission, including representatives from the Ministries of Economy and Environment. The commission identified anomalous price increases at gas stations belonging to two major oil companies, with average prices exceeding recommended levels. The Guardia di Finanza (Finance Police) has been tasked with conducting targeted investigations into these discrepancies as part of a pre-existing operational plan coordinated between the Ministry of Enterprises and the Ministry of Economy.
The rapid alert commission is scheduled to reconvene on Wednesday to assess the situation further. The government’s response comes amid a broader context of rising oil prices linked to geopolitical instability, particularly the recent escalation of conflict in Iran and the wider Middle East. According to reports, diesel prices have increased by an average of 5.5% in the past week, while gasoline prices have risen by over 3%, with some highway stations reporting diesel prices as high as €2.50 per liter.
The mobile excise system was initially introduced in 2008 and subsequently modified by the Meloni government in January 2023, following a decision to discontinue a fuel tax cut implemented by the previous Draghi administration. The system allows the Minister of Economy, in conjunction with the Minister of Environment, to temporarily reduce excise duties on fuel when rising oil prices generate increased VAT revenue for the state.
