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Diesel Prices Jump in Italy as Tax Cut Ends With No Relief Plan

Diesel costs hit €2.244 per litre in Italy after excise relief expired. Government confirms no decision on new subsidies yet, impacting drivers.

Fuel pump nozzle at an Italian petrol station displaying prices

Diesel prices rose across Italy on Monday after a temporary tax break expired at midnight, leaving motorists to absorb the full increase while ministers said no decision had been reached on a replacement mechanism.

The 6.1 cent discount on diesel excise duties ended on 5 October, restoring the standard rate of €0.673 per litre — the same level applied to petrol for months. Without a new decree, the full tax passed through to pumps.

What drivers are now paying

The Italy Ministry of Enterprises and Made in Italy reported average self-service prices on Tuesday: €2.043 per litre for petrol and €2.244 for diesel on national roads. Petrol slipped slightly from €2.048 the previous day. Diesel rose from €2.242.

On motorways, the averages were €2.054 for petrol and €2.267 for diesel. The figures reflect the immediate impact of the lost subsidy, which had been in place since 17 September.

Eni, the Italy-based energy company, confirmed its price ceiling remains but said it could not absorb the tax restoration. The group lifted its diesel cap from €2.19 to €2.25 per litre, while petrol held at €1.99. Eni stated the cap was always tied to the fiscal benefit in force.

Ministers: no decision on mobile excise mechanism

Italy's Deputy Economy Minister Maurizio Leo told reporters in the Transatlantico at Montecitorio that the government was still evaluating its options. "We are reasoning about it, there is no decision, let's see, we are working on it," he said.

Environment and Energy Security Minister Gilberto Pichetto confirmed that activating the so-called "mobile excise" system would require a joint decree from his ministry and the Ministry of Economy and Finance. No decree has been signed.

"Yesterday we thought so," Pichetto said, when asked why the mechanism had not been triggered. "No, I have not signed anything. You need my signature. Ask the MEF."

The mobile excise mechanism, had it been launched, would have used extra VAT revenue from rising fuel prices to fund excise cuts, offsetting pump costs. Its absence means the additional VAT yield stays in state coffers.

Companies respond as families adjust

Beyond price caps from major fuel retailers, some employers are acting to cushion staff from higher commuting costs. Fiere di Parma, the trade fair organiser, has added a second optional remote-working day per week for its roughly 90 employees from October.

For staff travelling over 30km daily, a single day of remote work saves about 47.5km of commuting. Over three months, that translates to roughly 570km avoided, 35 litres of fuel saved, €76 in costs and 90kg of CO₂ emissions spared.

Antonio Cellie, the chief executive of Fiere di Parma, said: "In a phase where the cost of travel weighs more and more on family budgets, we thought it important to intervene with a simple but concrete measure in favour of our collaborators."

Consumer associations estimate that from March to August, Italian motorists spent roughly €4.7 billion more on fuel than in the same period a year earlier. A tax credit for the road haulage sector has been extended through October.

The government says the file remains open, but for now, drivers face higher prices with no immediate relief in sight.

Author

Giulia Moretti

Political Correspondent

Reports on Italian politics, EU affairs, and migration policy. Committed to cutting through the noise and delivering balanced analysis on issues that shape Italy's future.