The price of diesel at the pump could increase due to the rise in excise dutiesin particular for a possible alignment between excise duties on diesel and petrol. We’ve been talking about it for days with constant denials. However, the Ministry of Economy and Finance has ruled out an increase in prices, highlighting however that at the same time the government must adopt measures to reduce the environmentally harmful subsidiesin line with European indications and icommitments of PNRR and of Plan for the Ecological Transition of 2022.
Excise duty on diesel, increases the price of diesel on diesel?
The government has announced that the possible adjustment of excise duties on diesel will not be a simple alignment with those on petrol, but one remodulation. The government’s objective, outlined in Structural budget planis to increase revenue by reducing the “environmentally harmful subsidies” (SAD)as required by European recommendations. The ways to implement this measure and guarantee the necessary economic coverage, without reducing tax revenues or increasing transport taxation, are yet to be defined. The government aims to save 2 billion euros by cutting these incentives by 2025, as also indicated in Initial energy and climate plan (PNIE) presented in Brussels by the Minister of the Environment Gilberto Pichetto Fratin.
Remodulation of excise duties between diesel and petrol
The Ministry of Economy and Finance (MEF) has clarified that excise duties will not be increased and defined the idea of an increase in excise duties on fuel as misleading. The Mef highlighted that, in accordance with the commitments of the PNRR and the European Recommendations, a remodulation of excise duties between diesel and petrol is necessary, rather than a simple increase in excise duties on diesel.
Currently, taxes on the price of gasoline amount to 60%while those on diesel al 56.2%. In practical terms, the excise duty on diesel is equal to 0.617 euroswhile that on petrol is equivalent to 0.728 euros. Excise taxes increase the cost of fuel in Italy among the highest in Europedespite the net price being lower than the European average.
How could diesel fuel increase?
The realignment of excise duties could happen in two ways: the first involves an increase of 5.5 cents for diesel with an equivalent reduction for petrol; the second scenario involves maintaining the revenue neutralityconsidering that diesel consumption is almost triple that of petrol; therefore with increases of approx 4 cents for petrol and one decrease of approximately 7 cents for diesel. The first option could result in a small increase in revenue.
Risk of diesel inflation
Any increase in excise duty on diesel could lead to dangerous price inflation to the detriment of all consumers and a generalized increase in prices of basic necessities at the supermarket. Diesel, in fact, is the fuel mainly used in road transport.
The game is open, in the meantime the situation is growing worry both of citizens on the danger of generalized inflation, and of millions of motorists who are confirmed as one of the most harassed categories.
Read also:
→ National average fuel price
→ How to save on fuel
→ Fuel prices on Google Maps
→ Fuel excise duties, real petrol and diesel prices
→ Petrol and diesel at 1 euro, discounted price
→ How to refuel at the self-service yourself?
→ How to pay at the fuel self-service
→ What do you think? Drop by discussions on the FORUM!
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