Italy Mulls Fuel Tax Cuts as Middle East Conflict Fuels Energy Price Surge
Government Response and Economic Impact
ROME, March 8 (Reuters) - Italy is considering cutting fuel excise duties using higher-than-expected value-added tax revenues triggered by rising pump prices, the prime minister said, as businesses warned the conflict in the Middle East could sharply raise energy costs.
Excise duties account for a large share of the pump price in Italy and are levied per litre, not as a percentage of the total price like VAT.
Government Measures Under Consideration
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Mobile Excise Duties Mechanism
Giorgia Meloni said the government was studying possible activation of so-called “mobile excise duties,” a mechanism that allows the state to use extra VAT receipts generated by higher fuel prices to reduce excise taxes on petrol and diesel.
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Ongoing Review by Economy Ministry
“The activation has been under review for several days by the economy ministry,” Meloni said in a video message late on Saturday.
Business and Consumer Reactions
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Estimated Impact on Italian Companies
CGIA Business Lobby
Italy’s CGIA, a business lobby representing artisans, small and micro‑enterprises, estimated that higher energy bills linked to the conflict could cost Italian companies nearly 10 billion euros ($11.62 billion).
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Consumer Advocacy
Unione Nazionale Consumatori
Consumer group Unione Nazionale Consumatori urged an immediate 10% cut in fuel excise duties.
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Transport Sector Concerns
Small Hauliers’ Group Ruote Libere
Small hauliers’ group Ruote Libere warned that a 37% rise per litre could add more than 11,000 euros a year in costs for each truck.
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Agricultural Sector Impact
Farmers’ Group CIA
Farmers’ group CIA said unjustified fuel price hikes, with agricultural diesel up 30–35%, risk farmers operating at a loss if they don't receive national and EU support.
($1 = 0.8607 euros)
(Reporting by Giselda Vagnoni; Editing by Bernadette Baum)
