Meloni evaluates fuel excise relief and seeks EU budget flexibility at Med9 summit

Proceedings at the Split summit

Prime Minister Giorgia Meloni landed at Split Saint Jerome Airport on Wednesday to attend the Med9 summit, held at the Radisson Blu hotel in Split. She was received by Croatia's State Secretary for Europe Andreja Metelko-Zgombic and Italy's Ambassador to Croatia Paolo Trichilo before meeting Croatian Prime Minister Andrej Plenkovic. Summit proceedings comprised an initial working session from 10:00 to 11:00, a second session from 11:10 to 12:10, a working lunch, and a final joint press conference at 14:30. European Commission President Ursula von der Leyen participated in the summit, focusing on regional energy costs, European Union enlargement, and economic integration across the Mediterranean.

Fuel market trends and excise duty deliberations

At the concluding press conference, Meloni addressed rising domestic fuel prices and explained that the Italian government is evaluating a mobile excise duty mechanism. Revenue available for this measure stood at approximately 170 million euros as of September, though one report noted 160 million euros. Ministers are assessing whether to disburse these funds immediately alongside existing containment tools or preserve them for future market shifts.

We are always ready to intervene again, particularly with the mechanism of mobile excise duties. For the month of September we have about 170 million that can be spent for this purpose. We are asking ourselves whether it is more effective to spend them right now, when there are containment measures in place anyway, or to keep them as a reserve for when those measures might end.

Domestic fuel figures from the Ministry of Enterprises and Made in Italy observatory show the national average diesel price at 2.261 euros per litre. Unbranded stations registered the highest average diesel price at 2.28 euros per litre, while IP averaged 2.27 euros, Q8 reached 2.25 euros, Tamoil stood at 2.24 euros, Eni averaged 2.23 euros, and supermarket distributors recorded 2.21 euros. Eni lowered its recommended diesel rate by 4 cents to 2.21 euros per litre following changes in international refined product quotes, after having raised its diesel cap from 2.19 to 2.25 euros when tax benefits lapsed. Petrol prices ranged from 1.99 euros at Eni to 2.08 euros at unbranded outlets. Massimiliano Dona of the National Consumers Union stated that motorway diesel rose by 2 cents per litre in a single day, increasing the cost of a 50-litre tank by 1.00 euro nationally, 1.25 euros in Friuli Venezia Giulia, and 1.20 euros in Liguria.

Talks with the European Commission on budget rules

Meloni also held direct discussions in Split with Ursula von der Leyen regarding a formal letter sent by Italy requesting budget flexibility tied to inflation. She noted that Greece had put forward a similar position to European authorities.

Regarding the request to the EU for greater flexibility in light of inflation, it seems to me there is interest, because it is obviously a matter of common sense. Of course, the debate still has a long way to go, as reaching such solutions requires finding common ground among the Commission, the Member States, and the Council, but there is certainly a willingness to listen.

Meloni stressed that Italy is not requesting arbitrary fiscal headroom, but rather formal recognition of non-discretionary expenditure increases. She noted that actual inflation substantially exceeds the 1.8% benchmark planned three years ago. In Italy, this differential triggers statutory indexation on pensions and the single child allowance (assegno unico). In addition, rising raw material costs have expanded the required funding for national recovery and resilience plans, creating billions of euros in automatic obligations across member states.