Italy's economy minister Giancarlo Giorgetti has signed a decree extending the 17-cent-per-litre tax discount on diesel through Aug. 26, activating the so-called floating excise mechanism to keep fuel costs in check.
The extension covers two days — Aug. 25 and 26, one more than initially announced, and was signed jointly with Environment Minister Gilberto Pichetto Fratin. The measure sets the diesel excise rate at 532.90 euros per 1,000 litres for the two-day period. Funding for the extension comes from 20.8 million euros in additional VAT revenue collected in July, while the discount through Aug. 24 is covered by ministerial spending cuts enacted earlier this month. The decree awaits publication in the Official Gazette.
The discount, which includes reductions on both excise duties and VAT, comes as diesel averages about 2.20 euros per litre and petrol around 2.08 euros at the pump.