The Government has decided to extend the cut in excise duties on petrol and diesel until 3 July 2026. The measure, which would have expired on 6 June, was confirmed through a decree of the Ministry of Economy and Finance, adopted in agreement with the Ministry of the Environment and Energy Security and published in the Official Journal.
Excise duty cut on petrol and diesel, extension of discounts until 3 July
The extension will come into force from 7 June and will remain valid until 3 July 2026. The excise duty cut of 5 cents per liter is confirmed for petrol. However, the situation for diesel fuel changes: the discount is reduced compared to the previous period and goes from 10 to 5 cents per litre. Also considering VAT, the effective benefit for diesel drops from 12.2 to 6.1 cents per litre.
The provision is part of the mechanism of the so-called “mobile excise duties”, introduced to allow temporary interventions on fuels when prices record significant increases. The system allows part of the increased tax revenues generated by the increase in energy prices to be used to finance temporary reductions in fuel taxes.
How the measure is financed
The economic coverage of the extension amounts to approximately 149.4 million euros. According to what is reported in the ministerial decree, the resources come from the increased VAT revenue recorded in May 2026. In particular, the Government will use part of the additional revenue deriving from the periodic payments of the value added tax made between 1 and 31 May.
The text of the provision states that the lower revenue generated by the reduction in excise duties will be addressed through “a portion, equal to 149.4 million euros, of the increased revenue achieved in the period from 1 May to 31 May 2026”.
The effects on the price at the pump
The extension aims to limit further increases in fuel prices, although the reduction of the discount on diesel could translate into slightly higher prices for those using diesel vehicles. In recent months the cost of fuel has been influenced by the trend in international energy prices and by the geopolitical tensions that have affected some strategic areas for oil supply.
According to consumer associations, the reduction in the discount on diesel could affect refueling costs. The National Consumers Union has underlined that, given unchanged industrial prices, the cost of diesel could once again exceed certain psychological thresholds both on the motorway network and in ordinary distributors.
The position of some business associations is different. Fapi, the autonomous small business federation, welcomed the extension, defining it as a useful measure to support companies and production activities struggling with still high energy costs.
Hypotheses for the next few months
The options under study include new fuel bonuses and corporate welfare tools aimed at workers through companies, with possible tax breaks. The executive is also evaluating more structural interventions to support the purchasing power of families and the competitiveness of companies, while avoiding fragmented measures or measures with limited effects. In the meantime, the excise duty cut will continue to represent one of the main tools to contain the impact of fuel price increases, at least until the new deadline set for 3 July 2026.
