Fuel price woes: excise duty cuts absorbed by the market, government scrambling for resources
The diesel price reduction is no longer effective, and gasoline is also being evaluated. However, further measures are unlikely in Tuesday's Cabinet meeting.A distributor
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There's still no convincing mechanism to provide targeted aid to those who truly need it. And above all, aside from the VAT increase, which is still being calculated, funding sources haven't yet been found that would allow for more "courageous" measures, as Matteo Salvini is calling for. Thus , tomorrow's Council of Ministers, Tuesday—on paper, the last before the summer break—will most likely not lead to further government action to address fuel costs.
Meanwhile, prices continue to soar, and even the latest diesel excise tax cut, which expires on August 6th, has been effectively absorbed by the market, as consumer associations have reported. The government has been debating for days how to proceed. Giorgia Meloni has promised to do "everything possible" to ensure citizens are not left alone, explaining that the government will need to reconvene "before the deadline to decide on the next steps."
But there is skepticism from many quarters that the occasion will be, in fact, Tuesday's Council of Ministers.
People are wondering whether it's necessary to reintroduce price controls on gasoline, and they're monitoring the price trends at the pump. They're hoping it's a "spike," sure, but one that can subside. Meanwhile, they're seeking resources, avoiding the shortcut of introducing new taxes.
(Unioneonline/E.Fr.)
