Italy to extend excise duty cut on fuels, economy minister says

Italy will extend beyond May 1 a cut in excise duties on fuels to help families and firms cope with rising energy costs, Economy Minister Giancarlo Giorgetti said on Thursday, as consumer prices surged by almost 3% year-on-year in April, Report informs via Reuters.

The cabinet will meet to extend the cut "this afternoon," Giorgetti told journalists in parliament.

Italy has already spent around 700 million euros ($818.58 ⁠million) to cut excise duties on petrol and diesel for just over 40 days until May 1.

Prime Minister Giorgia Meloni said this week the new cut under discussion would likely have a greater impact on diesel than on petrol.

Meanwhile, Italian EU-harmonised consumer prices (HICP) rose by 1.7% in April from March, with the annual inflation rate jumping to 2.9% ⁠from 1.6%, preliminary data showed on Thursday.

The acceleration in inflation was driven by the energy sector amid turmoil in the Middle East.

Giorgetti reiterated Italy's calls for the European Union to ⁠grant greater budget flexibility for energy-related spending.

"It is very difficult to defend (an EU) clause that provides for budget leeway for defence and ⁠rules out aid measures to respond to the energy crisis," he said.