Excise duty cuts to run until Wednesday; the Government is seeking funds for a further extension
The traditional return from the summer holidays for Italians will feel very different from a year ago. At the end of August 2025, petrol and diesel were priced at 1.696 euros per litre and 1.622 euros per litre respectively
These are the most critical days for the Government since the start of the energy crisis. This is because prices – for both petrol and diesel – are practically at their highest. And because, at present, the last weekend in August is not covered by any form of relief, given that the excise duty cut on diesel is due to expire on 26 August.
Not to mention that, in the meantime, the general election campaign is set to get into full swing. This is evident, after all, from most of the opposition’s statements on the issue of fuel prices, particularly the proposal by Democratic Party secretary Elly Schlein to tax the oil companies’ windfall profits.
Government working on a new measure
In fact, the issue of funding is, as always, the decisive factor. This is because the Government will not be able to rely on the mechanism of variable excise duties by the end of August, given that the month’s VAT windfall will be recorded at the beginning of September.
And so the hunt for resources begins once again. This comes after significant cuts have already been made to the ministries on two occasions, and the coffers have been scraped clean – for example, by drawing on funds linked to antitrust fines.
Bridge works until early September
Something, however, will have to be done, and the Government has already tasked experts from the Ministry of the Economy with this. At least until early September, when a Cabinet meeting is already scheduled, the government will then be able to count on the additional VAT revenue from August which, unlike in June and July, could provide an extra boost given that prices were higher (and consequently so was the revenue).
