Fuel: Italia tops the European rankings for tax on diesel. Of every litre of diesel, 1.08 euros goes to the State

Following the expiry of the suspension on excise duty cuts on 5 October, Italia ranks first amongst European countries in terms of the tax burden on diesel. This is highlighted by Adusbef, which has carried out an analysis based on European Commission data updated as at 19 October. ‘The mechanism of variable excise duties, which could have ensured a reduction in prices at the pump by utilising the increased VAT revenue, has been consigned to oblivion. Compounding this is the possible end of the discounts and price caps introduced by oil companies which, if not extended, will cause petrol and diesel prices across the Italian network to shoot up in the coming days,” observes Adusbef’s president, Antonio Tanza.

Excluding Malta, which benefits from a special state-administered pricing scheme for fuel, the burden of taxes and excise duties on diesel in Italia is the highest in Europe, amounting to 48 per cent of the final price paid by motorists at the pump. Belgium, Denmark, France and Lithuania follow, with percentages ranging between 42% and 43%, whilst the lowest taxation is found in Poland (25.5%), Spain and Sweden (around 27%). On average across Europe, taxes on diesel account for 37.9 per cent of the final price paid by motorists.

Given the wholesale price of diesel in Italia excluding tax (1.166 euros per litre), every citizen pays almost 1.08 euros in tax on a litre of diesel, compared with a European average of 0.790 euros: this means, as Adusbef points out, that Italian motorists pay 29 cents more in tax than the European average, amounting to an extra €14.50 on a 50-litre tank of diesel.

This does not mean that Italia is the country with the highest diesel prices: in the ranking of average prices at the pump, Finland tops the list at 2.531 euros per litre, followed by Denmark (2.501 euros), and the Netherlands (€2.456), whilst Italy comes in 7th place with an average of €2.244 per litre – the association points out – Apart from Malta (€1.21 per litre), the lowest prices are found in Poland (€1.79 per litre), Bulgaria and Spain (€1.88 per litre).

As regards petrol, and again excluding Malta’s special regime, Italia is the third European country with the highest taxes, amounting to 51.4 per cent of the final price paid at the pump, behind the Netherlands (52.8 per cent) and Greece (52 per cent). On average, 1.036 euros per litre of unleaded petrol goes to the state in the form of VAT and excise duty, compared with a European average of 0.878 euros (45.5 per cent of the final price). In Italy, therefore, 15.8 euro cents more in tax is paid per litre of unleaded petrol than the EU average, amounting to an extra cost of around 8 euros per full tank – according to Adusbef’s calculations.