Price lists

Fuel: final week of the excise duty cut. And diesel prices are back above 2.1 euros per litre

Although the price of petrol is considerably higher than last winter, it has remained stable for weeks and stands at around 2 euros per litre

by Rome Editorial Staff

19 August 2026

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3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

A countdown is ticking away and, at the same time, fuel prices are rising. This combination is causing the Government increasing concern during the summer break, which could be cut short – next week – so that it can take further action on high fuel prices.

When does the discount expire?

The date marked on the calendar is Tuesday 25 August, when the 17-cent reduction in excise duty on diesel (including VAT) will expire after just under a month. This measure was introduced at the end of July and renewed at the start of August during the last Cabinet meeting before the summer recess.

The reason for focusing solely on diesel is linked to the inelasticity of demand for this fuel. It is, in fact, the most widely used fuel for freight transport and in various sectors such as fishing and agriculture: it is no coincidence that, for all the sectors mentioned, hundreds of millions of euros in tax credits have been made available to help businesses.

Prices

Yet, despite the €245 million expenditure approved by the Council of Ministers on 4 August, the price of diesel has remained significantly higher. And it has continued to rise, reaching €2.107 per litre today. This figure is a long way from the price at the time the latest excise duty cut was decided – on 28 July, a litre of diesel cost 2.180 euros, i.e. 7 cents more – but it is nonetheless a cause for concern as the discount at the pump draws to a close. Without further intervention, from next Wednesday diesel is set to reach 2.277 euros per litre. A record high.

Although the price of petrol is significantly higher than last winter, it has remained stable for weeks. It stands at around 2 euros per litre, a record high for this year but not historically, given that higher peaks were reached during the conflict in Ukraine in 2022.

To these figures must also be added the cost of oil, which – following the fall in June (to $75 a barrel) driven by hopes of a truce between the US and Iran – has returned to levels close to $90 a barrel. Compared with pre-war levels – that is, February – this represents an increase of 28.5 per cent.

No mobile excise duties

It has now been six months, then, of constant deliberations to find solutions to rising prices, both in terms of monitoring the oil companies’ compliance – a task largely handled by the Mimit – and in terms of securing the funds to finance discounts for motorists.

Among the measures implemented by the Government were cuts to ministry budgets (on two occasions), the collection of fines imposed by the Competition Authority, and the use of VAT windfall revenue (arising precisely from the rise in fuel prices) to finance the ‘mobile excise duties’. However, the government will not be able to use this mechanism next week, as the funds are only available at the start of the month; consequently, a stopgap measure will be required to tide the country over until the first few days of September.

During those days, therefore, the additional VAT revenue from August will be available; unlike that from June and July, this could provide the Government with a little extra help, given that prices throughout the month were above the average for previous periods. Who knows – perhaps this time, with workers returning to work, targeted measures will be introduced rather than universal ones, which, as a result, tend to benefit wealthier households more.

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