Add the Gazzetta del Sud as a source
The deadline, August 24, for the cut in excise duties for diesel is approaching and a price shock is materializing in the first counter-exodus after August 15th. The cost of fuel is galloping in a race that is taking petrol and diesel to new records. But, unless there are sudden calls, a council of ministers to launch new measures does not appear to be on the horizon before September.
The attack of the opposition
The opposition attacks: «We have made a concrete proposal – says a Milan Finance the secretary of the Democratic Party Elly Schlein – we need to adopt the mobile excise duty system, but the government doesn’t listen to us on this point and petrol always remains above two euros per litre”. The leader of the 5 Star Movement Giuseppe Conte from his social profiles immediately calls for an extraordinary council of ministers against high fuel prices.
Estimates from consumer associations
«Returning home from holidays – calculates Codacons – including fuel, tolls and stops in service areas can amount to around 270 euros per family and almost 300». In short, “the last, heavy blow of the holidays.”
Assoutenti asks the government to cut excise duties “at least until September 6th, avoiding devastating effects on the Italian economy”. The resources, he suggests, must come from the extra profits of energy companies, oil companies, banks and insurance companies.
The National Consumers Union calculates that «it has been a historic record for petrol» in recent years while «the government sleeps and hibernates. For higher prices we need to go back to 2022.”
Prices recorded today by Mimit
In the usual daily survey by Mimit, the ministry indicates that today the average price of fuel in self-service mode along the national road network is equal to 2.008 euros per liter for petrol (up compared to 2.005 yesterday) while on the motorway green petrol has increased to 2.085 euros (yesterday 2.080). Diesel in self mode on the roads today is sold at 2.128 euros (2.122 yesterday) and on the motorway at 2.200 euros (2.186 yesterday).
How the mobile excise duty mechanism works
The cut of 17 cents per liter on diesel (14 cents plus VAT), decided by the government on 28 July and extended on 4 August with a commitment of 245 million euros, remains in force until midnight on 24 August, while from 25 August the mobile excise duty mechanism takes over. The law allows the increased VAT revenue generated by the increase in the international price of oil to be used to temporarily reduce excise duties on fuel.
A mechanism of the same type had already been used at the end of July. The Mef-Mase decree of 27 July had reduced the excise duty on diesel for 28 and 29 July using 20.5 million euros of increased VAT revenue. For motorists, the effective price from 25 August will therefore depend both on the tax component and on the trend in crude oil prices and the prices charged by distributors.
Comparison with 2022
Looking at the increases at the pump, «it is likely that today’s prices are lower than that recorded in the weekly average from 27 June 2022 to 3 July 2022 when petrol cost 2.065 euros per litre, lower than today’s motorway price and higher than that of normal roads – calculates the UNC – To find a weekly average higher than both of today’s Mimit readings you have to go back to the reading of 21 March 2022 (from 14 to 20 March), with 2.137 euros per litre, a price which led the Draghi government to cut excise duties by 25 cents, 30.5 cents with VAT at 22%” explains President Massimiliano Dona, according to whom “Meloni considers motorists chickens to be plucked”.
«The abnormal growth in price lists at distributors risks creating a domino effect on the Italian economy with cascading price increases in all sectors, loss of purchasing power of families and contraction of consumption which is already not in good health» warns the president of Assoutenti Gabriele Melluso.