Fuel: a 17-cents-per-litre discount applies only to diesel. No changes to cigarette prices
There are no discounts on petrol, which is currently selling at an average price of 1.982 euros per litre
“A discount on diesel – and on diesel only – is expected, amounting to 17 cents in total between excise duty and VAT , until 6 August ”. This was stated by the Minister for the Economy, Giancarlo Giorgetti, at a press conference following the Council of Ministers meeting. “The cost of the measure is around 125 million euros,” added Giorgetti at the end of the Council of Ministers meeting on the subject of fuel costs and a specific decree on the matter. “We have not taken any action regarding excise duties on tobacco” added Giorgetti. Both the Lega and Forza Italia had in fact made it clear that they did not agree with the increase in taxes on cigarettes.
Double speed
The decision to focus resources on diesel, whilst leaving petrol out of the equation, reflects the different rates at which the two fuels have moved in recent weeks: this morning diesel is trading at 2.185 euros per litre, at the same levels as in March 2022, in the wake of Russia’s invasion of Ukraine.
Petrol, at 1.982 euros, remains below the critical threshold (even though this is the highest average price of the year) and should therefore be excluded from the measure.
Awaiting the mobile excise duties
Today’s decree is merely the first stage of a two-part manoeuvre.
The next Cabinet meeting (4 August) is expected to consider, in the light of the figures on the VAT windfall revenue for July, whether to activate the variable excise duty mechanism.
