Italy has temporarily reduced excise duty rates on certain energy products used as motor fuels under an interministerial decree issued by the Ministry of Economy and Finance and the Ministry of Environment and Energy Security, effective May 9, 2026.

Article 1 of the decree states that the measure is intended to offset higher-than-forecast value-added tax (VAT) revenues resulting from increases in international crude oil prices expressed in euros. The reduced excise rates apply from May 11, 2026, through May 22, 2026.

During this period, the following excise duty rates apply:

• Gasoline: €622.90 per 1,000 litres;

• Diesel fuel used as motor fuel: €472.90 per 1,000 litres;

• Liquefied petroleum gas (LPG) used as motor fuel: €242.77 per 1,000 kilograms;

• Natural gas used as motor fuel: €0 per cubic metre.

The reductions are made pursuant to the excise duty framework set out in Annex I of Legislative Decree No. 504 of October 26, 1995, as amended.

To compensate for the resulting reduction in excise revenue, Article 2 allocates €191.2 million from additional VAT receipts collected between April 1 and April 30, 2026. The compensation mechanism is authorized under Article 1, paragraph 290, of Law No. 244 of December 24, 2007.

The decree was published in Official Gazette No. 106 on May 9, 2026, and entered into force on the same date. The measure links temporary fuel tax relief directly to increased VAT revenues generated by higher oil prices, allowing the government to provide short-term excise reductions while maintaining overall fiscal balance.