In recent days we have begun to discuss hypothetical increase in diesel prices because of increase in excise taxes on diesel fuel which the government intends to introduce.
It’s worth saying right away that at the moment no final decision has been made. Why did we start discussing this topic? It all starts with Structural budget plan for 2025-2029 which was presented by the MoEF in Parliament. Apparently, the government intends to reorganize budget expenditures in some areas, and this will assessment of equalization of excise tax rates on diesel fuel and gasoline. Today, the excise tax on diesel fuel is actually lower than on gasoline. The goal is to generate more revenue by reducing environmentally harmful subsidies.
Rationalize and simplify specific areas of taxation in certain areas of taxation, such as the equalization of excise duty rates on diesel and gasoline and the policy of reorganizing incentives existing in the energy sector, as a strategic lever to simultaneously achieve the goals of increasing the efficiency of the Italian tax system and supporting the full achievement of the strategy energy and environmental deals at European and national level.
We repeat once again, this is only a hypothesis for now, but if implemented, this could lead to an increase in diesel prices, and the increase will hit the pockets of diesel car owners and truck drivers. The executive branch will continue to redistribute economic resources collected through green bonuses. The goal is to save €2 billion in environmentally harmful subsidies (SAD) by 2025.
Rumors about a possible increase in excise taxes on diesel fuel immediately forced consumer associations to intervene. In particular, according to Assutenti, this will be one amount of 3.1 billion euros.
Today, the excise tax on gasoline is 0.728 euros per liter, on diesel fuel – 0.617 euros per liter: a possible bringing of excise taxes on diesel fuel to the level of existing ones on gasoline will increase the price for distributors and increase If diesel fuel consumption remains at the level of 2023, then the overall damage for motorists will amount to 3.1 billion euros per year.
The association explains that of every liter of diesel fuel purchased by Italian motorists, 56.1%, which corresponds to 0.91 euros per liter at current prices, goes to VAT and excise taxes. The situation is even worse for petrol, where the taxation is 59.8%, which corresponds to 1.04 euros for every liter of green waste.
In 2023 alone, Italians paid a total of 38 billion euros due to taxation (VAT and excise duties) on fuels sold in Italy.
Let’s see what happens and whether the government really intends to move from words to deeds.
Source: HD Motori
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