Finance
Italy to Spend 417 Million Euros to Cut Excise Duties on Fuels, Decree Shows
Published by Global Banking & Finance Review®
Posted on March 19, 2026
2 min readLast updated: March 19, 2026
Quick Summary
Italy will allocate €417.4 million to reduce excise duties on gasoline and diesel through April 7 by lowering the rate from €672.90 to €472.90 per 1,000 litres, aiming to relieve high energy costs amid political tensions ahead of a judicial reform referendum.
Italy Sets Aside €417 Million to Reduce Fuel Excise Duties Through April 7
Government Measures to Address High Energy Costs
Overview of the Decree
ROME, March 19 (Reuters) - Italy has set aside some 417.4 million euros ($478 million) to cut excise duties on fuels until April 7, a decree approved by the cabinet late on Wednesday showed, as Rome struggles to find ways to help families and firms cope with high energy costs.
Details of Excise Duty Reductions
Published in the Official Gazette, the decree cut excise duties on gasoline and diesel to 472.90 euros per 1,000 litres from 672.9.
Funding the Tax Cut
The government plans to cover the cost of the excise duty reduction through spending cuts, the decree added.
Political Reactions and Criticism
Opposition and Analyst Responses
Analysts and opposition politicians criticised Prime Minister Giorgia Meloni, saying the move was driven by the need to drum up support ahead of a key referendum next week on a highly divisive government plan to reform the judiciary.
Expert Commentary
"A political stunt paid by taxpayers. Nothing else," Wolfango Piccoli, of the London-based political risk consultancy Teneo, wrote on X.
Additional Information
Currency Exchange Rate
($1 = 0.8734 euros)
Reporting Credits
(Reporting by Giuseppe FonteEditing by Alexandra Hudson)
Key Takeaways
- •The fuel tax cut equals a €200 reduction per 1,000 litres for gasoline and diesel until April 7, financed via spending cuts, under a decree published in the Official Gazette.—Reuters & decree details
- •The measure is part of broader relief efforts including a €3 billion energy support package covering electricity and gas, aimed at cushioning households and firms.—Bloomberg
- •Political critics, including Teneo’s Wolfango Piccoli, labeled the move as a taxpayer-funded political maneuver ahead of this month’s referendum.—Reuters
Frequently Asked Questions about Italy to spend 417 million euros to cut excise duties on fuels, decree shows
1How much money has Italy allocated to cut excise duties on fuels?
Italy has set aside approximately 417.4 million euros to reduce excise duties on gasoline and diesel.
2Until when will the reduced excise duties on fuels be in effect?
The excise duty reduction on fuels will be in effect until April 7.
3How much were the excise duties on gasoline and diesel reduced?
Excise duties were cut to 472.90 euros per 1,000 litres from the previous 672.9 euros per 1,000 litres.
4How does the Italian government plan to cover the cost of the excise duty reduction?
The Italian government plans to cover the cost of the excise duty reduction through spending cuts.
5What criticisms were raised regarding Italy's fuel excise duty reduction?
Analysts and opposition politicians criticized the move as a political stunt ahead of a key referendum.
