Italy confronts record summer fuel price surge, government to cut fuel taxes

The Codacons consumer association estimates that Italian motorists will spend about €10.8 billion on gasoline and diesel during July‑August 2026, an increase of €1.9 billion compared with the same period in 2025. In July alone, the average price of fuel at self‑service stations rose to €1.979 per litre for gasoline and €2.180 for diesel, with tax components (VAT and excise duties) accounting for more than half of the price.

In response, the government is preparing a series of measures. A decree on “mobile excise duties” aims to lower the diesel price back below €2 per litre by temporarily reducing the excise tax while offsetting the loss with higher VAT revenues from fuel sales. Another proposal allocates €120 million (between 2028 and 2030) to help fuel‑station operators convert their sites into electric‑vehicle charging points or biocarburant facilities, offering grants up to €60 000 per installation. The overall policy focus is to ease the cost burden on households and to accelerate the transition to cleaner mobility.

Political commentators have criticised the plan, arguing that the government is using public funds to subsidise fuel prices without adequately taxing oil‑company profits. Nonetheless, the combined fiscal and infrastructural actions are intended to mitigate the impact of the summer “fuel sting” on Italian consumers.