Italy’s fuel tax cut extended by Meloni for three weeks – Diesel drivers breathe easy

Rashmi Pandey — Thu, 30 Apr 2026 17:12:58 +0000

Italy has decided to extend its fuel tax cut beyond the May 1 deadline, with the measure expected to provide greater relief for diesel users, as the government responds to rising energy costs and inflationary pressures.

The move was confirmed by Economy Minister Giancarlo Giorgetti, who said the cabinet would approve the extension to help households and businesses cope with increasing fuel prices.

Prime Minister Giorgia Meloni had earlier indicated that the renewed tax relief would likely be shorter in duration compared to previous measures but would be more targeted, with a stronger impact on diesel than petrol.

Italy has already spent around €700 million on reducing excise duties on petrol and diesel over the past 40 days. The extension is aimed at continuing that support as energy prices remain volatile.

The decision comes as inflation shows signs of acceleration. Preliminary data indicates that Italy’s EU-harmonised consumer price index rose sharply in April, with annual inflation increasing to around 2.9%, driven largely by energy sector instability.

Officials say the government is under pressure to cushion the economic impact of global energy disruptions, particularly amid ongoing geopolitical tensions affecting supply chains. Italy, which relies heavily on imported energy, remains especially vulnerable to such shocks.

Meloni’s government has emphasized that controlling energy prices remains a priority. Alongside the tax extension, Rome is also urging the European Union to allow more flexibility in budget rules so member states can spend more on energy relief measures.

The proposed extension reflects a broader strategy to stabilize fuel prices while maintaining economic support for key sectors, including transport and logistics, where diesel plays a central role.

While the exact duration of the extension has not been formally detailed, earlier indications suggested it could last for a shorter period around a few weeks compared to previous rounds of relief.

The government is expected to finalize the measure in a cabinet meeting later on Thursday, ensuring continuity of relief as the previous tax cut expires.

Italy fuel tax cut | Business Upturn

Italy’s fuel tax cut extended by Meloni for three weeks – Diesel drivers breathe easy