Diesel discount ends, government opens extra-deficit of 29 billion

As of today, October 5, the tax discount of 6.1 euro cents on diesel excise duties has expired, replaced by the mobile excise duty mechanism. The measure, introduced to mitigate rising fuel prices, is now giving way to a different system just as consumer associations report an already heavy burden on Italian motorists.

According to calculations by Adusbef, soaring fuel prices have cost Italian families more than 4.7 billion euros in six months, with a burden of 1.7 billion concentrated in July and August alone. Since the start of the conflict in the Middle East, the same analysis reports, the average pump price of unleaded petrol has risen by 29.1% and that of diesel by 36.6%. Some oil companies have introduced a voluntary price cap intended to ease the impact of the increases, but the measure does not apply to independent service stations.

On the same day the excise duty discount expired, the Council of Ministers approved the Public Finance Planning Document along with an extra-deficit of 29 billion euros earmarked for energy and defense. The Minister of Economy Giancarlo Giorgetti indicated a more cautious approach on the budget, pointing out that public debt is projected to grow even in 2027, reaching 138.5% of GDP.

Measure	Value
Expired excise duty discount	6.1 cents/liter
Estimated burden (6 months, Adusbef)	over 4.7 billion euros
Council of Ministers extra-deficit	29 billion euros
Projected debt/GDP 2027	138.5%

Cuts of seven billion euros to projects under the Ministry of Defense, led by Guido Crosetto, are also under study, as part of the same budget plan that opens new fiscal space for energy and security. The news of the extra-deficit comes so far from a single source, the Council of Ministers’ statement reported by Il Sole 24 Ore; no independent confirmation is currently available.

“Prudence is needed” — Giancarlo Giorgetti, Minister of Economy

The picture emerging today is one of a government removing a price-containment tool for consumers while, at the same table, opening new deficit spending for energy and defense, with public debt remaining the variable on which the Minister of Economy himself calls for caution.