Meloni and Giorgetti discuss mobile excise duties as Italian fuel prices hit €1.97 for petrol, €2.16 for diesel

Rising prices at the pump

On Friday 24 July, average self-service petrol prices on Italy's national road network reached 1.968 euros per litre, up from 1.957 the previous day. Diesel climbed to 2.161 euros, compared with 2.141 on Thursday. Motorway prices were even higher: 2.059 for petrol and 2.228 for diesel. The national consumers' union UNC calculated that diesel rose by 2 cents in 24 hours, adding one euro to the cost of a full tank.

In 24 hours a litre of diesel costs 2 cents more, and for a refill you have to pay exactly 1 euro more than yesterday.

The meeting at Palazzo Chigi

Prime Minister Giorgia Meloni met Economy Minister Giancarlo Giorgetti at Palazzo Chigi on Friday. The discussion covered the general economic situation but focused especially on fuel price trends. Government sources said the executive "is examining possible measures, including the potential activation of the mobile excise duty mechanism." Additional meetings are planned in the coming days.

The government is examining possible measures, also with reference to the eventual activation of the mobile excise duty mechanism.

The mobile excise duty mechanism

The mobile excise duty system was introduced by the Prodi government in 2008 and reformed by Meloni in 2023. It finances a cut in fuel excise duties through the extra VAT revenue generated when oil prices rise. Since the war in Iran broke out, the government has cushioned prices with direct excise cuts: first 20 cents per litre, then 10, and most recently 5 cents. Those measures cost billions of euros and are no longer sustainable given Italy's large public debt.

Limitations and timeline

The mobile mechanism has two main drawbacks. The price reduction it can deliver is limited, estimated by the economic portal lavoce.info at between 7 and 10 cents per litre. It also acts with a delay, because the VAT revenue must be collected before the excise cut can be applied. July's VAT data is expected around 8 August, roughly two weeks away, meaning any relief would not be immediate. In the meantime, other instruments may be considered, though no details have been provided. Opposition leader Elly Schlein has also called for the mechanism's activation.

EU and market context

After another flare-up on Thursday, oil prices eased slightly on Friday. Brent crude for September delivery slipped to between 96 and 97 dollars a barrel, while WTI fell 2.94% to 89.48 dollars, still elevated compared to pre-war levels. The EU's oil coordination group said there are currently no supply problems, but acknowledged that an impact could materialise.