Italy considers fuel-tax cuts amid rising energy costs from Middle East conflict

Sunday 08 March 2026 - 12:45

Italy is exploring measures to cut fuel excise duties in response to surging energy prices, Prime Minister Giorgia Meloni said, as companies warn that the ongoing conflict in the Middle East could sharply increase costs. Excise duties in Italy, levied per litre, form a significant portion of the price at the pump, separate from value-added tax (VAT).

The government is examining the use of “mobile excise duties,” a mechanism that allows higher-than-expected VAT revenues generated by elevated fuel prices to offset part of the excise taxes on petrol and diesel. The economy ministry has been reviewing the potential activation of this measure for several days.

Business groups have sounded the alarm. The CGIA, representing artisans, small and micro-enterprises, estimated that higher energy costs could burden Italian companies by nearly €10 billion. Consumer organizations such as Unione Nazionale Consumatori are calling for an immediate 10% reduction in fuel excise duties.

Specialized sectors face steep impacts: small hauliers warn that a 37% per-litre increase could add over €11,000 annually per truck, while farmers report diesel costs rising 30–35%, threatening losses unless supported by national or EU measures.

The proposed measures reflect Italy’s attempts to cushion consumers and businesses from energy price shocks amid geopolitical tensions affecting the Middle East and global oil supply.