The Meloni government has just intervened to strengthen transparency on fuel prices. Here are the five things you need to know about the factors that have influenced the price increases and the actions taken so far.
Restoration of excise duties without discount
Last March, the Draghi government, faced with quotations that had reached a record value since 1996, thanks to the war in Ukraine, had introduced a discount on excise duties on fuel with the energy law decree, reducing the price of petrol and diesel for motor vehicles of 25 cents per litre, plus VAT for another 5.5 cents (total 30.5 cents per litre). The cut was extended from month to month until, on 23 November, the Meloni executive with another decree reduced the discount until 31 December, bringing it to 15 cents per liter plus VAT, for a total of 18 .3 cents, and has completely reset it starting from 1 January 2023. A decision motivated by the drop in oil prices compared to when the discount on excise duties had been foreseen.
The price increase
Between the last days of 2022 and the first days of 2023 there was an average increase in fuel prices comparable to that of the canceled excise discount, just around 18 cents for petrol and diesel. The data released on 10 January by the Ministry of the Environment confirm this. For petrol, the average price stands at 1,812.01 per 1000 liters (1.812 per litre) of which 728.40 for excise duties, 326.76 for VAT and a net price of 756.85 with an overall increase of over 10% compared to last week when the piece stood at 1,644 euros per thousand litres. Automotive diesel costs an average of 1,868.13 per 1000 liters (1.868 euros per litre) of which 617.40 for excise duties, 336.88 for VAT and with a net of 913.85: in this case the increase is equal to 9.39% (last week it amounted to 1,708 euros per thousand litres). The price increases were not uniform across the country: it was above all on the motorway and in the islands that the greatest increases were observed, with several breaches of the threshold of 2 euro per litre.
The controversial role of speculation
Also on the basis of this lack of homogeneity, various members of the Meloni government have attributed the increases to speculative phenomena. Among them is the Minister of the Environment and Energy Security, Gilberto Pichetto Fratin, who told Porta a Porta that he expected a stabilization of prices. “There are a number of situations that need to be monitored,” he added, citing the highways or areas where there is only one petrol station, such as on the islands. «For a price above 2 euros, a specific justification is needed. There is a request from the Antitrust for a verification of those cases where there has been a surplus, remembering that the price is free». But the accusations of speculation were rejected as “unfounded” by the Italian oil companies meeting in the Unem, according to which, precisely in the light of the data, the difference in prices today “is entirely due to the increase in excise duties”. Even the Confesercenti Faib gas station attendants responded harshly to the minister’s words.
The global context and the cost of the discount
Beyond the controversy, the cancellation of the discount on excise duties and the relative VAT goes hand in hand with the drop in oil prices below 80 dollars, which have brought down the price at the pump, today, despite the increases, much more low of March levels. On the other hand, the embargo on Russian oil decided on December 5 by the European Union, which from February 5 will extend to refining products, starting with diesel, could generate further volatility. And increases are already visible these days due to the reopenings in China and the collapse of the dollar. But Italy cannot forget the cost of the discounts on excise duties, which have now returned to pre-crisis levels: the full cut was worth around one billion a month, for a total of nine billion in lower revenue in the state coffers in 2022. A sacrifice impressive for a country grappling with commitments to counter high bills and with a rising public debt.