Oil prices, which have returned to around 100 dollars per barrel, are pushing for the activation of new government brakes on fuel prices. But difficulties in reaching an agreement within the majority on the subjects to target with tailored support require more time to build the architecture of “targeted aid.” At this crossroads, yet another extension of the generalized cut on diesel excise duties is emerging, although Palazzo Chigi would prefer to avoid another stopgap measure and quickly move to the new phase. However, a new decree must be approved tomorrow, because letting the discounts expire, which end tomorrow at midnight after the last interministerial decree with mobile excise duties, would bring diesel to a peak of 2.34 euros per liter. And the absence of new measures would expose the government and majority to attacks on the very delicate ground of the battle against inflation.
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Three stages
The framework that took shape in yesterday’s meetings is born from these premises. The idea is once again a three-stage path, starting with a new extension of about fifteen days of the diesel discount, then moving to a quarterly selective aid mechanism covering October, November, and December. The 2027 budget should then take care of the rest, also in light of the evolving situation. Numbers, calendar, and strategies are still in flux, linked to more than one variable.
So far spent 2.61 billion
The practical constraints are naturally imposed by public accounts. The series of excise cuts, which started on March 18 and has so far been divided into 14 episodes split between decree laws and interministerial decrees financed by the extra VAT revenue, has already cost 2.075 billion, to which 537.6 million for tax credits to road transport, agriculture, and fishing are added. Total: 2.613 billion.
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Another 15-day extension would require coverage of about 180 million, also largely benefiting those who could do without state aid because they do not belong to the lower income brackets.
Targeted aid
For this reason too, the Government would gladly avoid this move, to immediately move to the “targeted measures” announced by Prime Minister Giorgia Meloni last Friday while celebrating the record duration of the Executive in Bari. However, the goal does not currently seem within reach. For the acceleration, political as well as technical, that would be needed.
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