Short extension for diesel excise cut

The Italian Council of Ministers approved a decree-law on 10 September 2026 extending the excise duty reduction on diesel fuel by one week, keeping the measure in place until Thursday, 17 September. The discount of 14 euro cents per litre translates to a reduction of approximately 17 cents at the pump when factoring in value-added tax. The cabinet session concluded in approximately ten minutes, allocating 85 million euros to fund the seven-day prolongation. The decision follows previous discussions within the governing coalition regarding whether to extend generalized fuel discounts or replace them with targeted subsidies for lower-income households and transport operators. Deputy Prime Minister Matteo Salvini had previously suggested extending the measure toward the end of September using revenue from higher fuel VAT receipts.

Fuel prices and consumer reactions

The decision arrived as fuel costs rose across the country, driven by global market tensions and conflict involving Iran that pushed US WTI crude above 100 dollars per barrel, up from 67 dollars prior to the conflict. According to data from the Ministry of Enterprises and Made in Italy price observatory, average self-service diesel on national roads reached 2.184 euros per litre on 10 September, up from 2.177 euros the previous day. National road petrol stood at 2.077 euros per litre, while motorway diesel reached 2.258 euros and motorway petrol rose to 2.163 euros per litre. Consumer groups criticized the brief extension and the exclusion of petrol. Massimiliano Dona, president of the Unione Nazionale Consumatori, stated that the government needed to double the discount rather than provide short relief.

“It was necessary to at least double the discount: 30 cents for diesel, instead of 14, and 15 for petrol.”

Road diesel2.184

Road petrol2.077

Motorway diesel2.258

Motorway petrol2.163

Road diesel

2.184 €/l

Road petrol

2.077 €/l

Motorway diesel

2.258 €/l

Motorway petrol

2.163 €/l

Data from the article text

Accelerating domestic energy extraction

Alongside the tax provision, the decree-law introduced mechanisms to speed up exploration and extraction permits for oil and natural gas in Italy. The measure allows the national government to appoint special commissioners to assist regional authorities in processing concessions for hydrocarbon resources. Prime Minister Giorgia Meloni explained that the policy aims to curb foreign energy reliance while lowering expenses for households and domestic firms. Meloni also pointed to broader energy objectives, stating that the country had added 28 gigawatts of renewable capacity while pursuing a path toward nuclear energy development.

“The goal is to reduce dependence on foreign countries, pay less, ensure lower costs for families and businesses, and defend the energy security of the nation.”

Fiscal pressures and coalition divisions

Maintaining the diesel tax reduction costs the state roughly 13 million euros per day, adding to more than 2.6 billion euros spent on fuel cuts and road transport tax credits since March. The executive branch faces budgetary constraints and is waiting for 22 September, when national statistics agency Istat will release figures showing whether Italy's deficit-to-GDP ratio has fallen below 3%, potentially ending an EU excessive deficit procedure. Divisions persist within the majority regarding future funding sources for targeted relief. The League proposed financing targeted support by taxing windfall profits of oil companies, an approach opposed by Forza Italia. Meanwhile, the government plans to present a revised package of targeted fuel measures during the third week of September.