Italy: Lowers Fuel Taxes to Stop Surge in Prices

In light of the rising prices in the fuel sector, the Italian government has issued a decree that eliminates excise taxes on some forms of natural gas and methane. The measure is intended to tackle the sharp rising in the sector's price caused by the Russia-Ukraine conflict.

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The Italian Prime Minister, Mario Draghi, has announced a low excise tax on gasoline, diesel fuel, liquified petroleum gas, and all forms of natural gas to come into force by Tuesday and remain effective until July 8.

The excise taxes will be removed for natural gas used for transport, at the time that only the five percent will remain for the value-added tax. Taxes on Gasoline will be lowered to 502.50 U.S. dollars per 1 000 liters.

In the meantime, taxes for liquified petroleum gas (LPG) will be reduced to 191.74 dollars per 1 000 kilograms from its previous 239.158 dollars per 1000 kilograms.

Oil prices have evidenced a sharp rise since last February, after the start of the Russian special military operation in the Ukrainian territory; at that time, Russia was the only supplier of natural gas and petroleum to Italy.

A few weeks ago, the Italian government signed new gas supply deals with multiple other countries. Last April 21, Roberto Cingolani, Italian Minister for Economic Transition, said that the country would be "almost" independent from Russian gas imports by mid-next year.