Eni Caps Fuel Prices in Italy Amid Meloni’s Bid to Handle Rising Costs
Overview of Eni’s Fuel Price Cap and Government Response
By Francesca Landini
Eni’s Announcement and Price Details
MILAN, Sept 25 (Reuters) - Italian state-controlled energy group Eni on Friday said it would cap fuel pump prices for at least one month, supporting Prime Minister Giorgia Meloni's efforts to curb energy costs.
Specifics of the Cap
Eni said its Enilive unit would sell diesel at no more than €2.19 per litre and petrol at no more than €1.99 per litre, starting from Monday, saying it represented a discount of around 17 cents from current average prices.
Government Reaction
"The government thanks Eni for the important initiative," Meloni's office said in a statement, calling it "a commendable gesture of consideration for Italy."
Duration and Potential Extension of the Price Cap
The price cap will be valid for an initial period of 30 days, with the possibility of extending it through the end of the year, depending on market and supply trends, the company said.
Government Measures on Fuel Costs
Excise Duty Cuts and Tax Breaks
Meloni's administration has repeatedly renewed temporary cuts in fuel excise duties in recent months, spending around €2.8 billion, when also including tax breaks for truck drivers.
Recent and Upcoming Changes
The latest cut of around 12 cents per litre applies only to diesel and expires on Friday. It is set to be reduced to around 6 cents per litre from September 26 to October 5.
Market Context and Industry Response
Geopolitical and Supply Factors
Eni noted that geopolitical crises, combined with a shortage in Europe's refining capacity, had "driven fuel prices to levels that are extremely burdensome for Italian households and businesses."
Solidarity and Consumer Impact
It presented its price cap decision as "a further gesture of solidarity toward the country, consumers, and its customers," saying it had already refrained from fully passing on cost increases to consumers.
Consumer and Policy Reactions
National Consumers Union
The National Consumers Union also praised Eni's move, while suggesting that it could persuade the government to back off from mooted plans to introduce a windfall tax on energy companies.
Government Tax Policy
Economy Minister Giancarlo Giorgetti has said he would prefer a coordinated move at the EU level but has not ruled out a domestic windfall tax, as the government prepares the 2027 budget law, to be unveiled next month.
(Reporting by Francesca Landini, Giuseppe Fonte and Angelo Amante, editing by Alvise Armellini)
