Monday, February 26, 2024

From January 1, the price of fuel will be higher

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Tomorrow, December 31, the procedure will end I entered Last March by the government of Mario Draghi to reduce the price of fuel through the so-called “Discount on production feeThe 2023 budget law does not provide for any extension of the measure: it means that unless new decisions are taken in the matter from January 1, 2023, gasoline, diesel and LPG may cost 18.3 cents per liter.

Excise duty is a tax on certain products (fuel in this case): it remains unchanged as prices increase and is included by the seller in the final price of the product. When there is an increase in prices, as happened during this year, the government can decide to reduce the excise tax to reduce it: the tool for doing this is the so-called mobile consumption tax, a mechanism introduced in 2008 precisely in the face of a significant growth in oil prices.

Essentially, the measure requires the government to use the increased value-added tax revenues to finance a decrease in excise duties, thus curbing price hikes. Last March, the Draghi government did just that: With the additional revenue of €500m in value-added tax obtained from price hikes, it funded the drop in excise duty of 25 cents per liter for petrol and diesel (which includes VAT). added). has become 30.5 cents) and 8.5 cents per kilogram for LPG (10.37 with VAT). Last November, Meloni’s government lowered the cuts to 15 cents a liter (18.3 with VAT) for petrol and diesel, while LPG fell from 8.5 to 5.1 per kilogram.

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In the budget law for 2023, agreed yesterday, The government maintained a series of measures to contain the effects of energy price increases, but did not include consumption tax deductions. For a full tank of 50 liters, the complete elimination of the deduction on the production fee will result in an increase of about 9 euros per tank.

Wynne Dinwiddie
Wynne Dinwiddie
"Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst."
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