Fuel: excise duty reduction on diesel extended by one week

The fifteenth extension of the excise duty cut, which the Government approved during a lightning-fast Cabinet meeting lasting just 10 minutes, will last seven days. The measure is expected to cost around 100 million euros, and also includes an extension into September of the tax credit for road haulage companies.

The funding, along the same lines as what happened at the end of August, is expected to come in the form of an advance tax payment to be borne by energy companies. What is taking shape, therefore, is a shorter timeframe than the fifteen days initially anticipated. In any case, the view remains that the new measure is intended to give the Government the time needed to finalise the framework for the ‘targeted aid’ announced last week by Prime Minister Giorgia Meloni.

For this new phase, political agreement still needs to be reached on defining the group of beneficiaries – an essential prerequisite for determining the financial commitment and the allocation of funds. The fact remains, however, that – at least in the options drawn up so far – any bonus would cover the final three months of the year, starting on 1 October. This would therefore leave a gap of around fifteen days at present between the expiry of the new extension and the introduction of the subsequent measures. It is easy to foresee that, in a few days’ time, the issue will be back in the spotlight.