Italy Extends Diesel Tax Cut as Fuel Prices Bite

Italy has extended its diesel tax cut until September 5 to shield households and businesses from higher fuel costs linked to rising oil prices. The latest extension will cost an estimated €130 million in lost revenue, according to Italian media.

The reduction of about 17 euro cents per liter remains in place through September 5. Prime Minister Giorgia Meloni's government has repeatedly rolled over fuel tax cuts since the outbreak of the US-Iran conflict in February.

Rising fuel prices have become a growing concern for consumers and businesses, particularly trucking companies and farmers that rely heavily on diesel. Higher energy costs have added to pressure on Meloni's right-wing government as it seeks to protect purchasing power and support economic growth.