Italy to Unveil New Measures Amid Rising Fuel Prices and Fiscal Pressures
Government Response to Fuel Price Surge and Economic Challenges
Cabinet Plans and Upcoming Measures
ROME, July 27 (Reuters) - Italy's cabinet will adopt new measures on Monday to curb soaring fuel prices, officials said, as concerns mount over the fiscal impact of such moves.
Impact of Global Events on Italian Economy
The rise in energy and consumer prices due to the war in the Middle East has been a major headache for the Italian government, which is trying to safeguard households' purchasing power and energy-intensive industries while sticking to a deficit reduction path agreed with the European Union.
Details of Cabinet Meeting and Focus Areas
The officials, who did not want to be named, told Reuters Italy's cabinet would meet at 1530 GMT to discuss a new set of measures focusing on diesel prices, with further action expected on August 4.
Previous Measures and Their Fiscal Impact
Temporary Excise Duty Cuts
Italy introduced a temporary cut in excise duties on diesel and petrol in March in response to the energy shock triggered by the Israel-Iran conflict.
Extension and Expiry of the Measure
The measure was extended several times, and progressively scaled back, until it expired on July 3, at a cost to state coffers of almost €2 billion ($2.28 billion).
Criticism from European Institutions
Both the European Commission and the IMF criticised the excise duty cut, saying Italy should have applied more targeted measures to shield the most vulnerable households.
Current Fuel Prices and Economic Indicators
Recent Fuel Price Data
The industry ministry said in a statement on Monday that the average price of fuel at self-service stations across Italy's road network is €1.982 per litre for petrol and €2.185 for diesel, up from €1.803 and €1.882, respectively, on July 3.
Exchange Rate Information
($1 = 0.8767 euros)
(Reporting by Giuseppe Fonte, editing by Andrei Khalip)
