Fuel prices in Italy: the impact of taxes and excise duties
In Italy, fuel prices are highly dependent on fiscal components. Currently, the average price of petrol is around €1.78/l at self-service stations and €1.924/l at petrol stations, while diesel costs around €1.685/l at self-service stations and €1.829/l at petrol stations.
Composition of fuel prices
The price at the petrol station is made up of several items:
- Industrial price: the cost of fuel after taxes have been deducted.
- Gross profit: distributors’ profit.
- Excise duty: fixed taxes per litre levied by the state.
- VAT: Value Added Tax, currently 22%, is applied to the price including excise duties.
Fuel prices without taxes
The abolition of excise duties and VAT will significantly reduce fuel prices. For example, petrol at self-service petrol stations will cost around 0.731 euros/l, and diesel fuel around 0.764 euros/l. quoteturn0search0
Price comparison table
| Fuel | Price at petrol stations | Price excluding VAT Tax | Tax burden | Self-service Petrol
| €1.78 / l
| 0.731 € / l |
58.9%. |
Gasoline supplied
| 1.924 € / l
| 0.849 € / l
| 55.9%. |
Diesel Self-service | |
1,685 € / l | 54.7%. | Diesel fuel supplied
| 1,829 € / l |
0,882 € / l
| 51.8%. |
Origin of excise taxesFuel excise taxes in Italy were introduced to finance specific events, such as the 1935 Ethiopian War or the 1980 Irpinia earthquake. However, many of these taxes remain in force over time, resulting in a high tax burden on fuel. quoteturn0search2 Economic impact on consumersConsidering a tank capacity of 50 liters, a full tank of petrol at a self-service petrol station will cost around 89 euros. Without taxes, the same full tank would cost around €36.55, a saving of over €50. Proposals to reduce the tax burdenSome proposals include introducing excise taxes on mobile devices that would adapt to changes in oil prices, as well as revising outdated excise taxes. However, such measures require a balance between fiscal needs and consumer support. —In conclusion, taxes represent a significant part of the cost of fuel in Italy. Revising tax policy could help reduce consumer costs and stimulate the economy. , Source: link-motors.com
|
|---|
