Italian government announces temporary fuel tax cuts

On Monday, July 28, 2026, the Italian government led by Prime Minister Giorgia Meloni announced a reduction in taxes on diesel fuel by 0.17 euros per liter, effective until August 6. This decision, which does not currently extend to gasoline, is estimated to cost approximately 125 million euros. Finance Minister Giancarlo Giorgetti stated that the necessary funding will be sourced from antitrust fines and a public fund designated for flexible state expenditure coverage.

The government is scheduled to meet again on August 4 to evaluate potential further measures. Meanwhile, Italian authorities are exploring a long-term strategy known as a "mobile tax system." This proposal aims to utilize additional VAT revenue collected during periods of rising oil prices to offset the cost of future fuel tax reductions, thereby minimizing the burden on public finances. Discussions regarding the implementation of this systemic change are ongoing.