The Minister of Economy Giancarlo Giorgetti announced in a video link with the Trento Festival of Economy that the government will once again extend the cut in excise duties which serves to keep the price of petrol and diesel low. “We are trying to extend the measures to cut excise duties until the first week of June” said the economy minister. The dossier is apparently being finalized by officials of the Ministry of Finance.
“Red alert on oil supplies in the summer without agreement with Iran”
Second the estimates of Today, the cut in excise duties ordered by the government last March 18, and subsequent ones extensions until May 22nd, have so far cost state coffers around 1.3 billion euros, with an impact of around 20 million euros per day considering the entire period of validity of the measure. And to extend the discount currently in force on petrol and diesel until next June 12, the government needs to find resources for around 340 million euros.
What would happen with excise taxes
For the consumer association Codacons, the extension of the excise duty cut only until the first week of June is unsatisfactory. “Fuel prices at the pump still remain excessively high, and for petrol they are even rising on the national network – explains the association – Extending the cut in excise duties only until the first week of June does not appear to be a sufficient measure, because once the discount expires the price lists would return above 2 euros per liter throughout Italy, worsening Italians’ supply costs and transport costs, with direct effects on inflation. Not to mention that, even if the conflict in the Middle East ended today and immediately reopened the Strait of Hormuz, the prices of petrol and diesel at the pump would take weeks to return to pre-crisis levels, due to the well-known phenomenon of the double speed of fuels – adds Codacons – For this reason we ask that the cut in excise duties be extended to the entire period of the Iranian emergency and instability of oil prices”.
Without an extension of the measure, petrol would increase by 6.1 euro cents per litre, and based on the average prices of Tuesday 19 May it would reach 2.01 per liter on the ordinary network: this would be an increase of around three euros at full capacity. As regards diesel, without the current discount the price would rise to 2.22 euros per litre, with a drop of around 12.2 euros for a full tank.
The government decree
Giorgetti announced that there will be further interventions in the council of ministers. “Tomorrow there will be a legislative decree in which there will be interventions to support road transport and local public transport”. On the road haulage front, a direct discussion between the executive and sector representatives is also scheduled at 4.45pm at Palazzo Chigi. The meeting will be attended by a government delegation led by Prime Minister Giorgia Meloni, with the Deputy Prime Minister and Minister of Infrastructure Matteo Salvini, the Minister of Economy Giorgetti, the Deputy Minister Edoardo Rixi and the councilor Stefano Caldoro. On the table will be the requests of the sector, which for weeks has been calling for measures to offset the increase in energy costs and guarantee support for freight transport companies.
According to Giorgetti’s announcement there will also be an intervention to ensure the continuation of the activities of the former Ilva. A central chapter of the CDM will then concern Niscemi, the Sicilian city hit by the landslide of January 25th, where Meloni went today for the third time since the beginning of the emergency. The Prime Minister announced the arrival of a double program worth a total of 150 million euros: they will be used to secure the territory and for contributions to the owners of destroyed or evicted properties who “will be able to purchase a new home, buy a building area or renovate other properties already available between Niscemi and the surrounding municipalities”.