High fuel prices, Council of Ministers meeting at 5.30 pm: temporary measures to bring prices down are on the way

According to the Ansa news agency, the Council of Ministers is due to meet this afternoon at 5.30 pm to approve the stopgap measure to tackle high fuel prices, which the government has been considering for several days. The decree-law is expected to focus in particular on the cost of diesel. Subsequently, in light of the figures on VAT windfall revenue for July, a second measure is expected to be introduced using the variable excise duty mechanism.

The government and the ruling coalition intend to take immediate action, partly to send a clear message ahead of the ‘red-alert’ holiday week at the start of August. High fuel prices remain, in fact, at the forefront of Giorgia Meloni’s mind; indeed, spoke at length about it on Friday with Minister Giancarlo Giorgetti in an attempt to identify the most effective strategies for tackling this complex issue.

However, the issue of securing the necessary resources remains, whilst the sharp rise in prices shows no sign of abating, as Sunday’s figures from the Mimit observatory also demonstrate (diesel at 2.18 and petrol at 1.98 per litre). So, let’s press ahead with a measure that should initially focus on diesel and then, as Minister Adolfo Urso himself explains, involve variable excise duties once the figures for July’s VAT windfall are known. ‘If the resources are found,’ the minister emphasises, ‘in addition to this measure, which has general effects, we could take targeted measures, as we have already done for the road haulage sector with the tax credit.’ Meanwhile, at the Council of Ministers meeting scheduled for 4 August, “we will be able to assess the available resources”, says Urso. After all, with the cuts implemented from March to early July, the government has already spent around 1.8 billion on this front.

The next steps also depend on gaining access in September to the funds arising from the flexibility measure that will be requested from the EU following the vote on the relevant resolutions in Parliament in the coming weeks. “For the Government and the majority,” emphasises Maurizio Lupi, leader of Noi Moderati, “tackling high energy prices is a priority, and indeed we have decided to activate as quickly as possible the €14 billion in flexibility granted by the EU to support households and businesses. Immediate measures to cap fuel prices are also being considered, in line with budgetary requirements.” Meanwhile, within the majority, there is strong pressure for action. “At the very least,” emphasises Luca Squeri, head of Forza Italia’s energy department, “we are obliged to introduce variable excise duties, offsetting the incremental VAT increase; the rest depends on the availability of resources, and this is the responsibility of the Ministry of Economy and Finance.”

Meanwhile, the opposition is going on the offensive. The M5S stresses that the measure on ‘mobile excise duties’ is merely a ‘stopgap’ and is calling instead for targeted measures to be considered, such as a fuel allowance for the most vulnerable groups. “Variable excise duties,” argues Angelo Bonelli of AVS, “do not solve the problem: they are a temporary measure paid for by taxpayers. The real solution is a one-off levy on oil companies’ windfall profits and a plan to accelerate the country’s transition to electric vehicles.” Meanwhile, the centre-left has tabled a motion in the Senate calling for “an emergency measure aimed at mitigating the impact of the current fuel price crisis on household purchasing power and business costs” and is calling for it to be put to a vote from Tuesday.