Italy Pushes Refineries to Boost Fuel Output Amid Record-High Prices
Italy's government is seeking to boost domestic fuel output to combat record-high gasoline and diesel prices. Industry Minister Adolfo Urso and Environment and Energy Security Minister Gilberto Pichetto Fratin have invited refining industry executives to a meeting on October 8 to discuss potential measures to raise production. The Italian government has already spent about $3.4 billion this year to fund tax and excise duty cuts on fuels, but prices remain high due to international crude oil prices and the global diesel crunch.
Gasoline prices in Italy have soared to an average of 2.14 euros per liter, or nearly $10 per gallon, while diesel prices are even higher. The constrained refining capacity in the Middle East and Russia is contributing to the price surge, with Iranian strikes on refineries and Ukrainian drone strikes at Russian refineries severely limiting output.
The Italian government's efforts may have some positive impact, as record-high fuel prices have led to a surge in battery electric vehicle sales in Europe. According to data from the European Automobile Manufacturers' Association, ACEA, battery electric vehicle sales rose by 52.2% in August compared to the same period last year.