Yesterday, the Italian government enacted the Fuel Decree which decisively addresses the rising fuel prices impacting families and businesses. Central to this decree is the excise tax cut that provides immediate discounts at the pump: 25 cents per liter for gasoline and diesel, and 12 cents for LPG. This significant reduction is further magnified by its impact on VAT, which is calculated on the total price and thus also decreases.

The new tax rates, as outlined in the official publication, are set for a twenty-day period: gasoline and diesel prices have been reduced to 47.29 cents per liter, while LPG is priced at 16.77 euros per kilo. This government intervention incurs a total expenditure of 423.5 million euros for the state, which is expected to rise to 549 million when considering the additional 125.5 million euros allocated for tax credits for transporters and fishermen.

Regarding funding for these measures, the government's approach is unequivocal: the largest share of financing will derive from a specific allocation in the budget, reflecting the administration's commitment to support the economy amidst escalating fuel costs. This move is aimed not only at providing immediate relief to consumers but also at stabilizing the broader economy during a time of significant market volatility, notably due to supply concerns involving gas imports from Qatar.