Key facts
- Italy's industry and energy ministers will meet with refining sector executives on October 8.
- The meeting aims to boost domestic diesel and gasoline production to lower record-high fuel prices.
- Average gasoline prices in Italy reached 2.14 euros per liter this week.
- Diesel prices are higher than gasoline due to global crude oil prices and a European diesel crunch.
- Italy has spent approximately 3 billion euros this year on fuel tax and excise duty cuts.
- Record-high fuel prices have led to a surge in battery and hybrid vehicle sales in Europe.
Italy's government is set to convene a meeting with executives from the nation's refining industry on October 8 to explore ways to increase diesel and gasoline production. The initiative comes as Italy, along with other major European economies like Germany and France, grapples with record-high fuel prices.
Industry Minister Adolfo Urso and Environment and Energy Security Minister Gilberto Pichetto Fratin have invited representatives from Unem, the sector's association, and major companies including Sonatrach, Socar-IP, Iplom, KPI, Alma Petroli, Ludoil/Isab, Eni, Saras, and Innovhub. The goal is to find measures to boost domestic fuel output and alleviate the pressure of soaring prices.
This week, the average price of gasoline in Italy reached 2.14 euros per liter, with diesel prices even higher. These elevated costs are attributed to a combination of rising international crude oil prices, a global diesel crunch particularly affecting Europe, and supply disruptions. Iranian strikes on refineries and reduced flows through the Strait of Hormuz, as well as Ukrainian drone attacks on Russian refineries, have constrained refinery capacity. Russia's ban on diesel exports, likely to extend through October, further tightens supply.
The Italian government has already allocated approximately 3 billion euros this year to fund tax and excise duty reductions on fuels. The surge in gasoline and diesel prices has also had a notable impact on consumer choices, with battery and hybrid electric vehicle sales in Europe, including the UK, Switzerland, and Norway, increasing by 52.2% in August compared to the previous year, according to data from the European Automobile Manufacturers’ Association (ACEA).