Italy lowers petrol and diesel prices by 25 cents by decree

The Italian government approved a decree on Friday that will reduce the special taxes on the price of a liter of petrol and diesel by 25 euro cents to mitigate the energy escalation, as confirmed by Italian Prime Minister Mario Draghi.

The text, approved unanimously by the Council of Ministers and which includes other aid of 4,400 million eurosprovides for a reduction of 25 euro cents of these fuels for one month, until April 30.

Draghi explained at a press conference that “a large part” of these measures will not be financed by public coffers but “tax a portion of the extraordinary profits that producers thanks to rising raw material costs.

“We are going to redistribute this money to struggling businesses and families“said the Prime Minister, who attributed this situation to the war in Ukraine.

The price of fuel has only increased in recent times, as shown by weekly data from the Ministry of Ecological Transition, the latest from the last 14 days.

A liter of gasoline costs 2,184 euros, of which 48.6% represents its market value (1,062 euros) and the remaining 51.4% special taxes (0.728 euros) and 22% VAT (0.393 euros).

Diesel is worth 2.154 euros per liter, of which 53.3% represents the industrial price (1.148 euros) and 46.7% comes from special taxes (0.617 euros) and VAT (0.388 euros).

In short, almost half of the final fuel price is “accurate”, excise taxes added to fund emergency response that are not subsequently removedsuch as the Florence floods of 1966 or the Ethiopian war of 1935, always included.

One month validity

The reduction in excise duties will have one month validity only because the intention is to see how the market develops in the coming weeks and to get through this period of volatility: “We will assess later”, advanced the Prime Minister.

The Minister for the Ecological Transition, Roberto Cingolani, had recently attacked the energy companies by stressing that “there are no technical reasons” for the rise in prices and that it was said to be “a scam” and a “speculation”.

The extraordinary contribution on the profits of energy producing companies will be 10%said the head of the Economy, Daniel Franco.

The decree also increases the number of households that will be able to access assistance to pay electricity and gas billsfrom 4 to 5.2 million family members with an income of less than 12,000 euros per year.

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And businesses will be allowed to pay May and June bills in installments, up to 24 monthly installments.

As for gas, of which Italy imports 90% of its consumption and more than 40% come from Russia, Cingolani considered it “very urgent” to set a maximum price to “avoid speculation”.

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