The Council of Ministers has extended the measure to stop the fuel price emergency expiring on May 1st. However, this decree provides for differentiated discounts for diesel and petrol
New proposal to cut excise duties on fuel to mitigate the effects of the increase in petrol and diesel prices after the start of the attacks in Iran and the consequent blockade of the Strait of Hormuz. This was decided by the Council of Ministers which met on 30 April. This is a cut in excise duties that will last 21 days, so starting from May 2nd it will be effective until the 22nd of the same month. The cut, as already announced, is different between petrol and diesel: minus 5 cents per liter for green petrol while minus 20 cents plus VAT for diesel, or around 24.4 cents. The difference is justified because since the beginning of hostilities in the Middle East “there has been a disproportionate increase in fuel prices with an increase of 6% in petrol and 20% in diesel” explained Prime Minister Giorgia Meloni.
the cut
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The previous writing of the decree law provided for a linear cut in the excise duty to which was added a further reduction in the final price to be attributed to the lower VAT revenue. In recent weeks, this measure had allowed the prices of diesel and petrol to be lowered by around 24.4 cents per litre, which on Thursday 30 April continued to settle at 2.052 euros per liter for diesel and 1.746 euros per liter for petrol respectively (Mimit data on the average self-service price along the national road network). The measure that ordered the cut in the tax levy was decided by the government for the first time with a decree law dated March 18th and then extended on April 3rd. “We moved for periods of two or three weeks at a time trying to imagine the scenario we found ourselves in front of from time to time” explained Meloni.
benefits
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On the possibility of a structural cut in excise duties on fuels which today cost 67 cents plus VAT per litre, without temporary cuts, Giorgia Meloni responded to a question in the press conference after the Council of Ministers as follows: “You know how I feel about the cut in excise duties in absolute terms. I don’t feel like saying today that I can make it structural, with an economic situation that by all accounts will not be very easy. The cut in excise duties – she explains – costs a lot for the benefit it produces, if it is made structural, because, as among other things, studies in recent days are demonstrating, paradoxically, most of those resources you spend go to the highest incomes rather than the lowest. If we made it structural today, we would essentially risk eliminating all the resources we have between now and the end of the year”.
La Gazzetta dello Sport
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