The government extended the fuel tax cut until August 2. Gasoline and diesel prices have been reduced by 30 cents a liter, but consumer associations protest that the measure is insufficient
It was up in the air and was definitely necessary, but public concerns lingered about an unsustainable level now. Ministers Daniel Franco and Roberto Cingolani, holders of the Economics, Finance and Environmental Transition respectively, signed the decree on May 24 extending measures currently in force aimed at lowering the final price of the fuel until August 2. Then the 30 cents per liter discount on gasoline, diesel, LPG and methane for cars is renewed. The price level is alarming: the latest weekly survey conducted by the Ministry of Economic Development, on June 20 (published every Tuesday), indicated an average price of 2.063 euros per liter for gasoline, 2.006 for diesel, and 82.9 cents for LPG. While methane for transport (the national average price measured in May by Assogasmetano) was 1,853 euros per kilogram. The new discount will be applied on the day following the publication of the decree in the Official Gazette.
Discounting fuel prices, consumer associations concern
Not enough: It’s the public reaction of consumer associations to the government ruling renewing a 30-cent discount on the final price of fuel until August 2. “The insufficient and insufficient discount for what is now a national emergency” – said Massimiliano Donna, president of the National Consumer Federation – “if the government does not want to return to managed prices as we have proposed, raise the discount by at least another 10 cents, as an exception to European legislation For diesel, the value-added tax was reduced from 22 to 10%.” In more detail, Rosario Traveliti, president of the Italian Consumer Center Association, said: “We judge positively that the government has repeated the decree to reduce the fuel tax by the equivalent of 30 cents per liter. But there is a lot that needs to be done, otherwise there is a certainty that this cut will translate into a gift for oil companies. In fact, even with the low price of oil these days, companies are selling market prices above 2 euros per liter. From our calculations, today’s fuel should be 1.8 per liter with a clear prediction of about 35 cents per liter. This results in additional profits of about $12 billion annually. All this is frankly unacceptable and that is why we are asking those with institutional responsibilities to intervene quickly and well in an issue that exacerbates more than 550 euros per family per year and affects the indirect costs on the prices of transported goods starting with food. Finally, Federconsumatori comments, with a note: “The government is good but not very good in terms of lowering the fuel tax. A process is certainly necessary, but still not sufficient to adequately control the expensive fuel in our country. It is necessary, in addition to lowering production fees, to take serious measures to combat ongoing speculation.”
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Borsa Italiana, Commentary of May 30, 2023 hearing
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