The Meloni government has neither renewed the diesel tax cut nor launched the replacement scheme it had promised. EU leaders meet on 15–16 October, while European governments pursue different measures to ease fuel costs.
Italy’s diesel tax cut expired on Monday 5 October without a replacement, adding to pressure on prices at the pump.
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The cut in diesel excise duty had helped cushion motorists against rising fuel costs in previous months.
Eni raises its diesel price cap
By the time it expired at midnight, the measure was worth only 6.1 cents per litre, having fallen over time from the initial discount.
In its place, the Meloni government had promised a mechanism using additional VAT revenue from higher oil prices to fund excise duty cuts. This required a joint decree from the economy and energy ministries, which had not been issued when the existing cut expired.
The government is still considering whether and how to renew the support.
Eni has kept its temporary price cap but raised the diesel ceiling from €2.19 to €2.25 per litre to reflect the end of the tax cut.
Von der Leyen floats joint purchases and flexibility on climate rules
Last week, G7 countries agreed to release 100 million barrels of diesel and crude oil from strategic reserves to increase supply and help ease energy prices.
European Commission president Ursula von der Leyen has also proposed pooling Europe’s energy demand and arranging joint purchases to strengthen its buying power.
She said exporters would be given another year to prepare for EU methane rules. These require suppliers to declare the greenhouse gas emissions linked to their production. This obligation could therefore be pushed back to 2028.
The Commission also plans talks with European refineries to help lower costs and secure supplies.
Meloni calls for changes to EU carbon pricing
Attention now turns to the European Council meeting scheduled for 15 and 16 October.
Giorgia Meloni has called on Europe to provide "clear and concrete political guidance", particularly on lowering energy costs and protecting industrial competitiveness.
In a statement, she added that she had "referred back to the joint contribution drawn up with Czech prime minister Andrej Babiš with proposals to ease the costs linked to the ETS system, support the most exposed industrial sectors, limit the impact of the cost of CO2 on the price of electricity and postpone further the entry into force of ETS2".
This is the Emissions Trading System, the mechanism under which, on the one hand, a price is set for each tonne of CO2 equivalent, which companies can buy or sell according to their needs; and on the other, a cap on total emissions is imposed on a range of sectors, to ensure an overall reduction.
Another measure on the table is a possible ad hoc tax on the extra profits of oil and gas companies. The idea is also backed by Economy Minister Giancarlo Giorgetti and is viewed favourably by other European governments. While awaiting details of the measures that will actually be adopted at EU level, European governments are nonetheless moving ahead in an uncoordinated fashion.
France expands commuter support, Germany cuts fuel taxes
In France, a support scheme for those who have to travel long distances for work has recently been extended and broadened. In particular, 100 euros will be paid to each of the 5.5 million French beneficiaries of the measure, plus a discount on the price at the pump. In addition, up to 1,000 euros in company aid granted to employees who need to use a private vehicle to get to work will be tax-free.
A rule has also been introduced that prevents the state from "profiting" from fuel price increases: any surplus tax revenue (VAT and excise duty) will be used to fund support schemes in the face of the crisis. Overall, these measures are expected to cost 450 million euros to the French public purse.
In Germany, from 1 October the Merz government introduced a temporary cut in excise duty on fuel of 17 cents per litre, both on diesel and petrol. The reduction will remain in force until the end of the year.
Spain extends fuel tax cuts until December
The Spanish government has also announced support measures for households and businesses, extending measures first adopted in March until 31 December.
The tax cut on diesel and petrol remains at 20 cents per litre in October and is scheduled to fall to 13 cents in November and 6 cents in December.
This is an urgent necessity for the government of Pedro Sánchez, which is contending with inflation that has reached 4.9% year-on-year, according to figures published at the end of September by the National Statistics Institute. For Madrid, the overall cost of the package in force since March has been around 5 billion euros, from which 20 million households and three million businesses have benefited.
Belgium’s diesel price ceiling hits a record of €2.501 per litre
In Belgium, regulated maximum prices limit how much filling stations can charge for fuel. The ceilings change with market conditions, so they do not prevent prices from rising.
The maximum price for diesel reached a record €2.501 per litre on 22 September. Stations can charge less than that ceiling.
In the United Kingdom, the average diesel price reached 199.52 pence per litre in the weekly figures for 5 October.
The government has extended the 5-pence-per-litre fuel duty cut, first introduced in March 2022, until 31 December 2026.
