Italy has reintroduced a temporary cut in diesel excise duties to curb rising fuel costs. The move offers short-term relief as Rome weighs further support if energy prices stay high.

Italy has reintroduced a temporary cut in diesel excise duties as Prime Minister Giorgia Meloni moved to cushion households and businesses from surging fuel prices driven by escalating tensions in the Middle East.

The Italian government on Monday approved a decree reducing diesel prices by 17 euro cents per litre until August 6. The measure, announced after a Cabinet meeting, is aimed at easing pressure on transport, agriculture and consumers as energy costs continue to rise.

In a post on X, Meloni said international tensions had once again pushed up fuel prices, increasing the cost of transportation and everyday goods. She described the tax cut as a “timely and responsible” response, acknowledging that it would not fully solve the problem but would provide immediate relief.

“We know it doesn’t solve the problem. But it is a timely and responsible response,” Meloni said, adding that the government would continue monitoring developments and decide on further measures before the current decree expires.

Economy Minister Giancarlo Giorgetti said the temporary tax cut, along with separate relief measures for truck drivers and farming businesses, would cost the government €125 million.

Giorgetti added that the government could consider additional support at a Cabinet meeting scheduled for August 4, including measures to reduce electricity and gas bills if energy prices remain elevated.

He said Italy and Germany were among the European countries most affected by rising energy costs because of their heavy dependence on fossil fuels and large industrial sectors.

The surge in fuel and consumer prices linked to the conflict in the Middle East has increased pressure on Meloni’s government, which has been seeking to protect household purchasing power while managing Italy’s strained public finances.