Italian President Sergio Mattarella signed a decree on Wednesday, March 18, 2026, authorizing a temporary cut in fuel excise taxes in an effort to alleviate rising costs for consumers. The move comes as global fuel prices have been volatile due to geopolitical instability, most recently stemming from a crisis in Iran.
The decree will reduce taxes on gasoline and diesel fuel by 25 cents per liter for a period of 20 days, also resulting in a corresponding reduction in value-added tax (VAT). Prime Minister Giorgia Meloni emphasized that the goal of the measure is to lessen the financial burden on Italian citizens.
The government estimates the total cost of the measure at approximately 500 million euros, according to reports. In addition to the excise tax cut, the decree includes provisions to support transportation and fishing industries through expanded tax credits. The credit for truckers will be reinstated, and extended to the fishing sector by 20%.
Authorities will also be strengthening oversight to prevent price speculation, with increased inspection powers and penalties for suppliers and gas station owners who attempt to exploit the situation. “Mr. Prices,” a government official tasked with monitoring price gouging, will have expanded authority to investigate and penalize offenders.
The rapid approval of the decree by the Council of Ministers and its swift public announcement reflect the government’s urgency in addressing the issue. Meloni confirmed the intervention via national television and social media, stating the government will ensure that savings are passed on to consumers and not absorbed by speculators.
The move follows anticipation from Matteo Salvini, who previewed the excise tax cut prior to the official announcement. A 130 million euro bonus for lower-income households is also included in the decree, according to reports from Il Sole 24 Ore. The decree underscores the government’s commitment to addressing economic pressures facing Italian citizens.
