Economy Minister Giancarlo Giorgetti announced a 17-cent-per-litre reduction in diesel excise duties through 6 August, costing the state EUR 125 million, as Italy wrestles with soaring energy costs and fiscal constraints. 

RF Report

Italy reintroduced a temporary excise duty cut on diesel on 27 July 2026 to ease fuel prices for households and businesses. The reduction brings state spending to EUR 125 million when combined with tax breaks for truck drivers and farming operations.

The prior excise cut, which ran from March through 3 July, expired after consuming nearly EUR 2 billion in state revenue.

Economy Minister Giancarlo Giorgetti indicated the government would assess the situation at a cabinet meeting on 4 August and consider extending relief to electricity and gas prices if needed.

Fuel prices have climbed sharply since early July. Petrol at self-service stations averaged EUR 1.982 per litre (up from EUR 1.803 on 3 July), while diesel reached EUR 2.185 (up from EUR 1.882). Motorway prices exceed EUR 2 for both fuels.

Massimo Garavaglia, head of parliament’s finance committee, said the government intends to hold both petrol and diesel below EUR 2 per litre.