The comparison

Fuel: a pay-packet bonus under consideration. Southern Italy sees the biggest rises in diesel prices

The prospect of support via the ‘Dedicata a te’ card is fading

 (Adobe Stock)

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

With the thirteenth decree approved to fund the cut in excise duty on diesel only, the government is beginning to consider a way out of the quagmire of across-the-board discounts.

Following the ten-day extension decided on Wednesday 26 August by the Council of Ministers, the government is looking ahead to 6 September, when the additional VAT revenue from August will be available and it will be possible to assess the reintroduction of the variable excise duties. However, the second half of the battle against high fuel prices now calls for more targeted measures.

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Among these, in recent hours, the proposal for a petrol allowance included in pay packets – which employers can claim as a business expense via fringe benefits – is gaining ground within the ruling coalition. ‘If the crisis were to continue on this scale,’ explained Marco Osnato, head of economic affairs for Fratelli d’Italia, yesterday, ‘a selective assessment will be carried out. One possibility is petrol vouchers provided by the employer, via fringe benefits. I believe this was a good idea from Deputy Minister Maurizio Leo.”

In the same vein, Forza Italia opposes the idea of helping Italians through https://www.ilsole24ore.com/art/famiglie-torna-carta-dedicata-te-prima-ricarica-ottobre-AIEmeZtD">‘Dedicata a te’ card, which is currently available to just under 1.2 million people: ‘As a former mayor,’ said Alessandro Cattaneo, national head of the party’s departments, ‘I would caution against any changes to the social card’ because ‘the only way to determine income is through the ISEE, and 80 per cent of the funds go to foreign nationals. “It strikes me as an unfair and ineffective system.” This view is also shared by representatives of the Lega.

In short, the approach is to move away from blanket support schemes, as the Minister for the Environment and Energy Security, Gilberto Pichetto Fratin, also confirmed yesterday on the sidelines of the ‘La Piazza’ event currently taking place in Ceglie Messapica. ‘As regards high fuel prices, we are talking about more selective measures, targeting a specific sector or certain income brackets.’

Against this backdrop, the overview of the half-year oil crisis linked to the Strait of Hormuz paints a picture of a country divided over price rises, particularly for diesel. This is to the detriment of Southern Italy, which, with four regions, tops the list of price rises: Sicily (+45.3 cents per litre), Campania (+45 cents), Puglia (+44.9 cents) and Calabria (+43.9 cents).

The first non-southern region on the list is Tuscany, where a litre of diesel costs on average 43.8 cents more than it did on 20 February.

The biggest price rises, however, do not necessarily correspond to the most expensive petrol stations. Or at least not exactly. This is because the highest prices of all are found in the Province of Bolzano (€2.184 per litre) and Friuli-Venezia Giulia (€2.158), where diesel has been expensive for months due to the complexity of the distribution network.

The reason why diesel is under closer scrutiny than petrol is structural: it powers the freight transport sector, a sector with inelastic demand that cannot reduce consumption when prices rise and ends up passing on the cost increases to the supply chain.

It is no coincidence that the government has taken action on this front on several occasions, not least to prevent price rises from being passed on to the public through the cost of living in general: according to the latest Istat data on consumer prices (July), year-on-year inflation exceeded the national average (+2.9 per cent) precisely in those regions where diesel prices rose the most, with Calabria at +3.5 per cent, Campania at +3.3 per cent, and Puglia and Sicily at +3.2 per cent.

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