Italian Cabinet Approves Emergency Decree to Slash Rising Fuel Prices

Italy's Cabinet approved a decree on March 18, 2026, to reduce fuel prices through a 20-day cut in excise duties, as the government moved to address rising costs linked to the fallout from the ongoing conflict involving Iran. The Cabinet meeting, known in Italian as the Consiglio dei Ministri, approved the package in the evening of March 18. The measures include a temporary reduction in fuel excise duties, anti-price-gouging enforcement, and support for the trucking sector. Deputy Prime Minister Matteo Salvini, who also serves as Minister of Infrastructure and Transport, had signaled the move earlier in the day, stating the goal was to bring diesel prices below 1.90 euros per litre. The government allocated funds under one billion euros for the temporary package, according to reporting published before the Cabinet session. The decree also contains measures specifically designed to crack down on price gouging amid the broader energy market disruption.

Fishing sector wins 20% tax credit on fuel costs Agriculture Minister Francesco Lollobrigida announced a separate measure within the decree granting a 20 (%) — tax credit on fuels for the fishing sector as part of the broader relief package. Lollobrigida, a leading member of the national-conservative Brothers of Italy party and a close ally of Prime Minister Giorgia Meloni, framed the credit as targeted support for an industry particularly exposed to fuel price volatility. The fishing sector relies heavily on diesel and has faced acute pressure as energy costs climbed in the wake of the Iran conflict. The broader decree also includes support measures for trucks, reflecting the government's concern about the knock-on effects of high fuel costs on freight and logistics. Officials confirmed that the lower excise duties would remain in place for around 20 days, after which the government indicated it could consider further measures following a European Council meeting. The temporary nature of the package reflects the government's framing of the situation as an acute, short-term shock rather than a structural reform of fuel taxation.

Consumer group says cut falls short by at least 20 cents Codacons, an Italian consumer protection association, argued that the excise duty cut approved by the Cabinet does not go far enough. The group stated that any reduction must amount to at least 20 cents per litre to have a meaningful effect on prices at the pump. Codacons has historically taken an aggressive stance on fuel pricing, frequently calling on Italian authorities to intervene when pump prices rise sharply. The group's position sets up a potential public dispute with the Meloni government over whether the 20-day measure will deliver tangible relief to ordinary drivers. The government has not publicly responded to the Codacons demand, and no confirmed figure for the exact size of the excise cut was available in the sources reviewed. The broader political context involves pressure on the government to act visibly and quickly, with fuel costs a sensitive issue for Italian households and businesses alike.

Slovenia begins rationing fuel at petrol stations In a sign of wider regional strain, some fuel distributors in Slovenia began rationing at petrol stations, according to a report published by ANSA on March 18, 2026. The rationing indicates that supply-side pressures from the Iran conflict are affecting countries beyond Italy across the broader European energy market. No further details on the scale or duration of the Slovenian rationing were available in the sources reviewed. The Italian government signaled it would monitor the situation and could announce additional measures after the upcoming European Council meeting, suggesting Rome views the current decree as a first response rather than a final solution. Italy has repeatedly used temporary cuts to fuel excise duties as a tool to manage pump price spikes, a practice that became prominent during the energy price surge that followed Russia's invasion of Ukraine in 2022. The current conflict involving Iran has again disrupted global oil supply expectations, putting upward pressure on prices across European markets. The Italian government under Prime Minister Giorgia Meloni, in office since October 2022, has faced recurring pressure to shield consumers and key industries from energy cost volatility. The broader European dimension of the fuel price crisis suggests that any durable solution may require coordinated action at the EU level rather than unilateral national measures alone.