Italy Set to Prolong Fuel Excise Duty Cut as Energy Prices Surge
Government Measures to Address Rising Energy Costs
Extension of Fuel Excise Duty Cut
ROME, May 19 (Reuters) - Italy will prolong a cut in fuel excise duties due to expire on May 22 as part of efforts to curb the spike in energy prices due to the war in the Middle East, top members of Prime Minister Giorgia Meloni's government said on Tuesday.
"We will certainly have to extend the excise cut," Deputy Prime Minister and Transport and Infrastructure Minister Matteo Salvini said in an interview with RTL 102.5 radio.
Government Confirmation and Funding Challenges
Economy Minister Giancarlo Giorgetti, a senior figure in Salvini's co-ruling League party, confirmed the decision, saying it was expected to be approved at the next cabinet meeting on Friday.
Funding the Duty Cut
Speaking on the sidelines of a G7 finance ministers' meeting in Paris, Giorgetti said the government was still looking at how to fund the duty cut, "which is never easy without exemptions from the EU Stability Pact."
European Commission's Response
The European Commission rebuffed on Monday calls from Italy for more lenient budget rules on energy-related spending, saying member states should tackle the negative impact of the Iran war by using existing resources and tools.
Impact and Previous Measures
Financial Impact
Italy has so far spent around 1 billion euros ($1.16 billion) to cut excise duties on petrol and diesel pump prices. The measure was introduced in March and first extended in late April.
Energy Dependency
Being highly dependent on imported energy, Italy is particularly vulnerable to supply disruptions linked to the U.S.-Israeli conflict with Iran.
Sector-Specific Concerns
Truck Drivers' Response
Salvini said the excise discount was not enough for truck drivers, who are planning a nationwide strike next week.
Government Support for Freight Sector
He said the government would meet freight transport associations on Friday to revive a tax credit measure and find "several hundred million euros" to support the sector.
"They are right," Salvini said of the planned strike.
Additional Information
($1 = 0.8596 euros)
(Reporting by Francesca Piscioneri, editing by Alvise Armellini)
