No to government to cut excise duty: How much will it cost?

No to government to cut excise duty: How much will it cost?

still grows gas I diesel, Expensive fuel has once again become the topic of the day, with motorists and consumer unions on a war footing against the government. Citizens do not forget the promises made by various political forces during the election campaign, who have raised their voice against it on several occasions Excise,

as also confirmed by the Minister Adolfo Urso, the owners of the companies and Made in Italy, they are the ones that have the most influence on the consumer price of petroleum products, but Palazzo Chigi is determined not to act to lower them. But how much do they really affect commuters and commuters’ expenses? And what are the differences with other European countries?

Adolfo Urso confirms: no cut in excise duty

Per cut excise dutyAccording to Adolfo Urso, 12 billion euros per year would be needed. A figure that can be used to reduce the tax deduction, especially for the lowest-paid workers and workers with the most children. The measure could become structural to tackle inflation and the economic difficulties of Italian families and restart the country’s economic system.

The minister was not in vain criticized for the announcements on fuel prices, which appeared to be aimed at sensationalism, but were in fact related to a wider discussion. Urso actually explained in an interview Republicthat “in Italy we have the lowest industrial cost of petrol and diesel in Europe, much higher than in Germany, France and Spain”.

OPEC+ Mistake: What Did Urso Say?

The government official thus confirmed that excise duty has the highest significance in the price list, though underlined that the apparent increase would be due to the strategies implemented by the government.Organization of the Petroleum Exporting CountriesAn economic cartel made up of Arab countries and Russia, with a reduction in production and a consequent rise in prices.

The Minister of Enterprise and Made in Italy has suggested a stance by the EU, as has already been done for the price of gas, with a price ceiling beyond which EU countries refuse to purchase raw materials. Unlike the cut in excise duty, a similar measure will get the nod from Palazzo Chigi.

Petrol-Diesel Price: How is it calculated?

There are three factors that determine the price of fuel.

  • il industrial costWhich includes production and distribution costs and company margins.
  • ExciseA set of taxes introduced for specific purposes and become structural over time.
  • VAT componentCalculated as a percentage of the selling price and applied to the other two elements.

The tax component of excise duty and VAT represents more than half of petrol and diesel prices. Italy is among the European countries where taxation has the greatest impact on the price list.

What is the price of petrol and diesel in the rest of Europe?

EU survey Data updated on 14 August 2023 shows that the peninsula is not the country with the highest tax rates on fuel, nor the country with the highest prices for petrol and diesel. However, data reported to the European Commission shows that there are EU states where filling costs are much lower.

Village average price of petrol average diesel price gasoline tax rate diesel tax rate
Austria 1,67 euro 1,69 euro 56% 52%
belgium 1,84 euro 1,89 euro 56% 46%
Bulgaria 1,37 euro 1,35 euro 43% 41%
cipro 1,54 euro 1,59 euro 45% 42%
Croatia 1,57 euro 1,60 euro 49% 44%
Denmark 2,05 euro 1,84 euro 51% 44%
Estonia 1,78 euro 1,63 euro 48% 40%
Finland 1,93 euro 1,90 euro 57% 46%
France 1,91 euro 1,83 euro 53% 50%
germania 1,92 euro 1,78 euro 54% 47%
Greece 1,97 euro 1,74 euro 56% 44%
Ireland 1,70 euro 1,61 euro 51% 49%
Italy 1,94 euro 1,83 euro 56% 52%
Latvia 1,69 euro 1,60 euro 51% 47%
lithuania 1,56 euro 1,50 euro 47% 42%
Luxembourg 1,63 euro 1,61 euro 47% 40%
malta 1,34 euro 1,21 euro 56% 54%
Netherlands 2,08 euro 1,89 euro 56% 46%
poland 1,48 euro 1,44 euro 45% 43%
Portugal 1,83 euro 1,71 euro 51% 46%
Czech Republic 1,64 euro 1,56 euro 50% 44%
romania 1,43 euro 1,46 euro 41% 39%
Slovakia 1,69 euro 1,61 euro 49% 41%
Slovenia 1,55 euro 1,61 euro 50% 51%
spain 1,69 euro 1,59 euro 45% 41%
Sweden 1,77 euro 2,05 euro 50% 37%
Hungary 1,65 euro 1,68 euro 41% 39%

Where fuel prices are higher and lower in the EU

The Netherlands and Denmark are places in the European Union where gas Its cost is higher on an average by 2.08 and 2.05 Euro per liter respectively. Instead Malta, Bulgaria and Romania are the happy islands of super, where it costs 1.34, 1.37 and 1.43 euros per liter respectively.

what worry diesel, Sweden and Finland followed with 2.05 and 1.90 euros per litre. Instead the lowest prices are in Malta and Bulgaria, Poland and Romania at 1.21, 1.35, 1.44 and 1.46 Euro respectively.

As far as the total share is concerned Taxation With regard to selling price, it should be noted that Italy is well above the EU average of 50% for petrol and 45% for diesel. In Italy, in fact, excise duty and VAT represent 56% and 52% of the final price of the two fuels.

Why such a stark difference in prices?

All countries buy oil from international markets at the same price, but have different policies regarding taxation and subsidies. It also sets a different retail price in neighboring states or states that have very similar economic systems. It should be noted that in the richest countries, with the exception of countries belonging to OPEC+, tariffs are generally very high.

United States of america They are an anomaly: fuel there is taxed at less than 20%, and the prices charged at the pump are certainly lower than in Italy and the rest of Europe. However, more than simply comparing costs, it is useful to start a discussion on the needs of individual countries for managing the resources generated from petrol and diesel and the services for citizens.

How much does the state earn from excise duty and how much is the cost cut

According to the latest data available, Italy earns well 24 billion Euro per year from excise duty on petrol and diesel. an important revenue that Rome could hardly afford to give up. For precisely this reason, Prime Minister Giorgia Meloni has decided not to pursue temporary cuts desired by the Draghi government to deal with the extraordinary surge following Russia’s invasion of Ukraine.

cut of 30 cents The cost of fuel will be equivalent to the expenditure of approx. 1 billion Euro per month. The cost is the same as that of citizenship income and alternative income support measures and the fight against absolute poverty, which certainly hit the pockets of Italians more than the rebate on the full amount, no matter how significant.

We should really consider that, according to estimates, households in our country spend approx. 260 euro per month in fuel. With a cut of 30 cents a liter, Italians would save less than they used to 40 euro per month. Complete abolition of excise duty would instead lead to savings More than 50%But without tax revenue from fuel, the state will have to raise prices for other services and do significant work deduction Somewhere else.





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