Italy’s government will extend a temporary cut to fuel excise duties beyond its May 22 expiry date, aiming to cushion consumers and businesses from rising energy prices linked to conflict in the Middle East. Deputy Prime Minister Matteo Salvini confirmed the move on Tuesday, with formal approval expected at Friday’s cabinet meeting.
Economy Minister Giancarlo Giorgetti said discussions are ongoing over how to finance the extension, noting fiscal constraints remain a challenge without additional flexibility under European Union budget rules. The European Commission rejected Italy’s request for looser spending limits on energy-related measures earlier this week.
The tax reduction, first introduced in March and renewed in late April, has cost Rome around 1 billion euros and seeks to ease pressure on petrol and diesel prices. Italy remains highly exposed to energy market disruptions because of its reliance on imported supplies.
Salvini also acknowledged mounting concerns within the freight transport sector, saying truck drivers planning a nationwide strike next week were justified in demanding further support. The government is expected to meet industry groups on Friday to discuss reviving tax credits and securing additional funding worth several hundred million euros.