Italy seeks refiners' help to boost domestic fuel production in bid to ease prices

Italy to Meet Refiners for Strategies to Boost Fuel Production and Ease Prices

Government Actions and Industry Response to Fuel Price Surge

By Giuseppe Fonte

Background: Global Supply Disruptions Impacting Italy

ROME, Sept 25 (Reuters) - Italy's government will meet with refiners next month to seek ways to boost domestic fuel production in a bid to soften prices amid global supply disruptions, Industry Minister Adolfo Urso said on Friday.

Wars in Iran and Ukraine have hit diesel supplies, stranding millions of barrels a day in the Middle East and Russia, draining inventories to historic lows and sending prices to record highs. Diesel fuels agriculture, manufacturing, and heavy transportation.

Prices of jet fuel and gasoline have also risen, creating political tensions internationally.

Upcoming Meeting with Refiners

Participants and Agenda

Urso and Energy Minister Gilberto Pichetto Fratin will meet representatives on October 8 from Italy's state-controlled Eni, Algeria's Sonatrach, Socar-IP, Iplom, KPI, Alma Petroli, Ludoil, Vitol-owned Saras and Innovhub, according to a statement.

The meeting will consider how domestic refineries can increase output of key products to mitigate the effects of the current international situation on supply.

Government Measures to Address Rising Prices

Temporary Excise Duty Cuts

Under pressure to shield families and firms from the impact of rising energy costs ahead of a national election due in 2027, Prime Minister Giorgia Meloni has spent almost €3 billion ($3.41 billion) this year to finance temporary cuts to fuel excise duties.

Despite her efforts, both petrol and diesel prices remain above a politically sensitive €2-per-litre threshold, data from the industry ministry showed on Friday.

The excise duty cut expires on October 5 and Pichetto Fratin has said the government cannot afford to extend it.

Alternative Solutions Sought

"We need to find a different way to address the issue," he told Radio 24 broadcaster.

Debate Over Windfall Tax on Energy Companies

While Urso and Pichetto are pursuing a cooperative approach with refiners, Economy Minister Giancarlo Giorgetti and his right-wing League party are pushing for a windfall tax on energy companies to help finance support measures.

Giorgetti would prefer a coordinated move at the EU level but has not ruled out introducing a domestic levy, as the government works on its 2027 budget to be unveiled in October.

Additional Information

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(Reporting by Giuseppe Fonte; Editing by Kirsten Donovan and Gavin Jones)