Italian government drafts decree to cap rising fuel costs

The Italian government is finalizing a decree to curb surging fuel prices, proposing a tax reduction of 24.6 cents per liter to keep diesel costs below two euros. Technical teams at Palazzo Chigi and the Ministry of Economy and Finance are using surplus value-added tax revenues generated by recent price increases to fund the mobile excise tax mechanism. Officials are also considering a tax hike on cigarettes to cover additional costs.

$$\text{The decree comes as diesel prices spike by up to eight cents, with extreme cases hitting €2.70 per liter and triggering financial police inspections. Opposition leader Giuseppe Conte criticized the proposed tax adjustments, stating they are inadequate and calling for direct fuel bonuses for vulnerable households.}

Sources: Il Messaggero.