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Italy Lets Temporary Fuel Excise Cut Expire

This ends a limited tax break that cost roughly €2 billion to public finances, thereby raising retail pump prices for drivers.

Overview

  • The government decree that set reduced excise rates from June 7 to July 3 expires today, so the temporary cut will not apply from July 4 unless it is unexpectedly extended.
  • Consumers will see pump prices rise by about €0.061 per litre, lifting average gasoline to about €1.86/l and diesel to about €1.94–1.95/l on ordinary stations with diesel above €2/l on highways.
  • Three outlets report that the cuts originated in mid-March as a larger emergency measure and were trimmed over time to the current level of roughly 6.1 cents per litre.
  • Ministers have pressed oil companies to pass on the recent fall in Brent crude to retail prices after global oil fell to roughly $70 a barrel following a USIran truce.
  • Consumer groups are urging renewal or a smaller discount and warn the end of the measure will raise household fuel bills and could push up retail prices more broadly.