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Italy’s Fuel Tax Shift Spurs Legal Action Over Pricing Discrepancies

Consumer groups allege manipulation as diesel prices rise significantly while gasoline sees minimal reductions despite tax adjustments.

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Overview

  • Italy's May 14 excise tax reform increased diesel duties and lowered gasoline duties by 1.83 cents per liter, aiming to equalize fuel taxation and boost public transport funding.
  • Diesel pump prices have risen by approximately 1.3–1.5 cents per liter, while gasoline prices have dropped only 0.4–0.5 cents or, in some cases, increased slightly.
  • Consumer advocacy groups, UNC and Codacons, have announced nationwide legal actions, alleging price manipulation and calling for investigations into potential fraud.
  • Industry group Unem attributes the pricing trends to global market factors, citing unpassed increases in international Platts prices, and warns of further diesel price hikes.
  • The state is expected to see higher tax revenues from the reform due to diesel's significantly larger market share compared to gasoline, despite the policy being designed as revenue-neutral per liter.