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Italy cuts diesel tax by 17 cents per litre until 6 August

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On 27 July 2026, the Italian government responded to record-high prices at Italian petrol stations with a temporary diesel discount The Meloni cabinet approved an eight-day reduction in the accise (excise duty) on diesel of 17 cents per litre, valid from 30 July to 6 August 2026. The corresponding legislative decree was published in the Gazzetta Ufficiale on 27 July and came into force on 28 July. The government chose not to introduce a parallel reduction for petrol, even though petrol prices on Italian motorways are currently at around 2.07 euros per litre, the highest level since the outbreak of the Middle East crisis in February. The diesel discount has a financial volume of approximately 125 million euros and is designed as a short-term response to ongoing price rises, whilst the government has scheduled a further cabinet meeting for 4 August to deliberate on whether to extend the measure.

What the new decree of 27 July concretely provides for

The legislative decree 133/2026, adopted by the Council of Ministers on 27 July on the proposal of Prime Minister Giorgia Meloni and ministers Giorgetti, Urso, Pichetto Fratin and Salvini, is at its core a targeted reduction in the accise on diesel as a fuel. As Canaledieci reports, citing statements by Economy Minister Giorgetti, the excise duty rate on diesel fuel is reduced for the eight-day period from 672.90 to 532.90 euros per 1,000 litres, a net reduction of 140 euros. Including VAT, this results in a discount of 17 cents per litre for the end consumer at the petrol station. For 28 and 29 July, an equivalent reduction is to be effected via a separate ministerial decree.

The financing of the measure draws on several sources. One portion comes from the so-called "accise mobili", namely the additional excise duty revenues from the previous month; another comes from fines imposed by the Italian competition authority; and a third from the Fondo per gli interventi strutturali di politica economica. In addition, the decree includes an extension of the tax credit bonus for the road haulage sector until July 2026, as well as a 20 per cent tax credit for agricultural businesses. A separate chapter of the decree provides up to 100.5 million euros for the continuation of the ILVA steelworks under extraordinary administration, a matter unrelated to the fuel measure itself.

Why only diesel, and why only for eight days

The decision to restrict the discount exclusively to diesel was justified by Italian Economy Minister Giancarlo Giorgetti after the Council of Ministers meeting on the grounds of limited financial headroom. As Sky TG24 reports, citing the minister's statements, the diesel discount represents a prioritisation in favour of goods transport and agricultural businesses. Both sectors rely predominantly on diesel, and their rising costs feed through most rapidly into consumer prices. A parallel petrol discount would have exceeded the available financial scope and, in the government's view, would have had no structural impact.

The limitation to eight days is likewise financially explicable. The total cost of the measure amounts to approximately 125 million euros and largely exhausts the available resources. The minister responsible for enterprise, Adolfo Urso, noted in an interview with the Corriere della Sera that Italy, unlike in previous emergency measures, cannot draw on the EU's budgetary flexibility. "No European country has introduced new emergency measures, even though fuel prices abroad have risen more sharply than in Italy," Urso stated. Prime Minister Meloni acknowledged openly in a social media post documented by ANSA on the evening of 27 July: "We know this does not solve the problem, but it is a timely and responsible response given the limited resources and the evolving international situation." The diesel reduction coincides with the higher motorway tolls in force since January 2026 and ongoing motoring costs that have noticeably increased the overall burden on motorists in Italy in 2026.

Current prices at Italian petrol stations

The concrete situation that prompted the government's decision can be read from the current price data published by the Italian Ministry of Economic Development. According to figures from the Osservaprezzi of MIMIT dated 28 July 2026, average prices in self-service mode stood at 1.982 euros per litre for petrol and 2.185 euros per litre for diesel on the national road network. On Italian motorways, prices were 2.071 euros per litre for petrol and 2.255 euros per litre for diesel. In certain regions and at certain times, diesel prices on motorways of up to 2.50 euros per litre were recorded. The motorway petrol price of 2.071 euros marks, according to the consumer association UNC, the highest level since the outbreak of the Middle East crisis on 28 February 2026, and is simultaneously the highest price recorded since 29 September 2023.

The 17-cent diesel discount brings the average price for diesel between 30 July and 6 August to approximately 2.02 euros per litre at road petrol stations and approximately 2.09 euros at motorway petrol stations. For a 60-litre tank of diesel, this represents a saving of around ten euros, which is noticeable for professional drivers, tradespeople and families with larger diesel vehicles, yet only partially offsets the price rises of recent weeks. For petrol drivers, who make up the majority of Italian and German private motorists, the record price remains in place without any reduction. Combined with motorway toll costs and ZTL fines in cities such as Milan and Rome, the real cost of travel for motorists in 2026 adds up to a considerable sum.

Criticism from consumer associations: "They have produced a mouse"

The political reaction to the decree is mixed. The president of the Unione Nazionale Consumatori (UNC), Massimiliano Dona, described the discount announced in the decree as "wholly inadequate" following its presentation. "They have given birth to a mouse", Sky TG24 paraphrased him as saying, invoking the well-known Italian expression for a politically overhyped result. Dona was particularly scathing about the complete absence of any reduction on petrol. "If it was right to differentiate the discount between petrol and diesel, as we have been calling for since March, it is profoundly incomprehensible that the government has not reduced the price of petrol at all, even though it is currently being sold on the motorway for 2.071 euros per litre."

The decree was, however, welcomed by associations representing the bus and road transport sector. As the Confcommercio association AN.BTI stated in a press release, the combined measure of a diesel discount and an extension of the tax credit bonus represents a "significant result" for tourist coach operators, who have been particularly hard hit by rising fuel costs. Agricultural associations also expressed satisfaction with the 20 per cent tax credit, which is tailored to their specific circumstances. The government, for its part, has repeatedly stressed that the short duration of the discount does not mark the end of the debate, but rather the opening of more intensive cabinet discussions on 4 August.

What 4 August might bring

The Council of Ministers on 4 August 2026 is the last session before Italy's summer recess and, according to signals already coming from the government, will examine several options. One possibility is an extension of the diesel discount beyond 6 August, provided that international price trends persist and budgetary headroom allows. An extension to petrol is also under discussion, though contingent on identifying additional sources of funding from the so-called "extragettito IVA" of July. According to information from Il Sussidiario on the government's plans , a family bonus of between 80 and 100 euros via the social card "Carta Dedicata a te" for low-income households is also being considered, while the previously discussed increase in tobacco duty as a source of financing has been taken off the table.

On the critical side, the MP Angelo Bonelli of Alleanza Verdi Sinistra has launched a sharp attack on the government's strategy. As L'Espresso reports Bonelli as saying, since 16 March 2026 the government has already spent more than 2.2 billion euros on the accise discount without recouping a single euro from the windfall profits of the oil companies. The government, in turn, is under pressure both to maintain budgetary discipline and to address the tangible burden placed on families and businesses. At the press conference following the Council of Ministers, Economics Minister Giorgetti stressed that "the wars have created a pricing dynamic for diesel that does not exist for petrol", which, from the government's perspective, explains the asymmetric approach.

What the diesel discount means for German-speaking travellers

For travellers from Germany, Austria and Switzerland, the current arrangement is of limited, though not negligible, relevance. Anyone planning a trip to Italy this summer by car and travelling in a diesel vehicle will benefit from the 17-cent discount for eight days. On a fill of 60 litres, that amounts to around ten euros in savings; on a fill of 80 litres for a larger vehicle, around 14 euros. Those who refuel in Italy between 30 July and 6 August 2026 and require several fill-ups over the course of their trip may find the cumulative saving quite noticeable.

For the larger proportion of German-speaking travellers driving petrol vehicles, the situation remains unchanged. Petrol prices on Italian motorways continue to exceed 2 euros per litre, and a government reduction is not in prospect for the foreseeable future. For those looking to reduce costs, the best approach is to avoid motorway petrol stations and instead fill up shortly after leaving the motorway, in nearby towns and villages, where petrol station chains such as ENI and Q8 are joined by the cheaper "pompe bianche", and prices are regularly two to ten cents per litre lower. The combination of high fuel prices, intensive speed enforcement under the new Autovelox decree and the growing spread of ZTL zones makes the cost calculations for a trip to Italy in 2026 more complex than in previous years.

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