Finance
Italy ready to hike taxes on firms that speculate on energy prices, PM says
Published by Global Banking & Finance Review®
Posted on March 5, 2026
2 min readLast updated: March 5, 2026
Quick Summary
Italy’s Prime Minister Giorgia Meloni announced readiness to raise taxes on companies that speculate on energy prices amid Middle East–driven gas supply volatility, supporting such measures with a recent IRAP hike on energy firms to fund €1 billion in relief. She also urged an EU freeze or reform of
Italy May Raise Taxes on Energy Firms Profiting From Price Speculation
Government Response to Energy Price Speculation
Prime Minister Meloni’s Position on Gas Price Increases
ROME, March 4 (Reuters) - Italy is ready to hike taxes on companies that take undue benefits from the rise in gas prices triggered by the Middle East crisis, Prime Minister Giorgia Meloni said on Thursday.
In an interview with radio broadcaster RTL 102.5, Meloni also reiterated Italy was in favour of freezing the ETS carbon-permit scheme to soften energy bills across the European Union.
Measures to Prevent Market Speculation
"We will do everything we can to stop speculation. I am ready to react, if necessary, even by raising taxes on companies that may speculate on prices through energy bills," Meloni said.
Recent Tax Increases and Financial Impact
Her remarks come just a few days after Italy increased its IRAP corporate tax on energy firms to help fund an aid package for families and businesses, in a move that would yield state coffers around 1 billion euros ($1.16 billion) through 2028.
European Union Policy and the ETS Scheme
EU leaders are assessing ways to curb volatility in the EU carbon market, as part of a revision of the market planned for later this year.
Meloni said the ETS scheme should be reviewed to avoid affecting companies producing energy from renewable sources.
Understanding the Emissions Trading System (ETS)
The Emissions Trading System (ETS), which is the EU's most important climate-change policy, forces power plants and industries to buy CO2 permits when they pollute - and caps the number of permits in the market - to curtail emissions over time.
"We have always called for the cost of ETS to be separated from the pricing of renewable energies such as hydroelectric and solar power, in order to lower energy costs," Meloni said.
Criticism and Controversy Surrounding Recent Policies
Italy, however, triggered widespread criticism last month for adopting a reimbursement scheme benefitting thermoelectric producers, with green energy advocates saying the move would favour fossil-fuel-based producers.
($1 = 0.8617 euros)
(Reporting by Claudia Cristoferi and Giuseppe Fonte, Editing by Alexandra Hudson)
Key Takeaways
- •Meloni signaled potential tax hikes targeting firms benefiting from gas‑price spikes, saying she’ll act “even by raising taxes” if needed to curb speculation.
- •The government recently approved a 2‑percentage‑point IRAP hike on energy companies (from 3.90 % to 5.90 %), expected to raise about €1 billion through 2028 to finance bill‑reduction measures (energynews.oedigital.com).
- •Meloni advocates for freezing or reforming the EU ETS to decouple its costs from renewable energy pricing, aiming to reduce energy bills and relieve green energy producers (embapower.ro)
References
Frequently Asked Questions about Italy ready to hike taxes on firms that speculate on energy prices, PM says
1Why is Italy considering a tax hike on energy firms?
Italy wants to discourage companies from profiting unduly from rising gas prices linked to the Middle East crisis.
2What recent tax measure has Italy implemented for energy firms?
Italy recently increased its IRAP corporate tax on energy companies to help fund aid packages for families and businesses.
3What is Italy's stance on the EU's ETS carbon-permit scheme?
Prime Minister Meloni supports freezing or revising the ETS scheme to reduce energy bill impacts and prevent harm to renewable energy producers.
4How much revenue is Italy expecting from the increased corporate tax on energy firms?
The tax hike is expected to yield around 1 billion euros through 2028.
5What criticism has Italy faced regarding recent energy market decisions?
Italy has faced criticism for adopting a reimbursement scheme that may benefit thermoelectric (fossil-fuel-based) producers over green energy producers.