The long-awaited emergency intervention launched by the government led by Giorgia Meloni to curb the surge in energy costs takes effect at midnight on 28 July. The measure introduces a discount on diesel of 17 cents per litre, resulting from the combination of a cut in excise duties of 14 cents and a consequent reduction in VAT of 3 cents. The measure will remain operational until August 6, but the expiration date could slip. A new Council of Ministers, already scheduled for August 4, will in fact evaluate the trend of the international oil market and the tensions in the Strait of Hormuz area to decide on a possible extension.
Because the discount only rewards diesel and ignores petrol
The exclusion of petrol from the price cap has raised several questions among motorists. As the Minister of Economy Giancarlo Giorgetti clarified, the choice to concentrate resources exclusively on diesel responds to precise economic and price structure reasons. Recently the average price of diesel has exceeded that of green fuel due to strong global demand and increases in raw materials caused by international conflicts. Added to this is the need to protect productive activities: the measure includes the extension of contributions to hauliers and a new tax credit for agriculture, two key sectors heavily dependent on diesel.
Financial coverage and state budget resources
The operation launched by the executive requires a total allocation of 125 million euros to cover the initial time window. The financial endowment was recovered through a mix of public channels: a part comes from the proceeds of the mobile excise duties of June, while the rest draws from the sanctions paid by the Antitrust and the Fund for structural economic policy interventions. During the debate in the Council of Ministers, the hypothesis of financing the discount through an increase in tobacco taxation was set aside, preferring a direct use of budget resources.
The real impact on drivers’ pockets
Calculations on the practical repercussions show a precise picture of the effect of the decree on fuel distributors. Considering an average full tank of 50 litres, the actual saving amounts to 8.5 euros, bringing the average price of diesel to around 2.015 euros per litre. Despite the cut, the average price of fuel remains at high thresholds, affected by market dynamics and the mechanisms of mobile excise duties, which allow the VAT increases to be sterilized only for the following month. The Minister of Defense and Deputy Prime Minister Matteo Salvini reiterated the institutions’ readiness to evaluate further interventions should the pressure on price lists continue.
