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Market Chatter: Italy Plans Fuel Tax Relief Extension as Middle East Conflict Prolongs

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Italy plans to extend the cut to fuel excise duties that were set to expire later this week, on May 22, in an effort to cap surging energy prices due to the ongoing conflict in the Middle East, Deputy Prime Minister and Transport and Infrastructure Minister Matteo Salvini told RTL 102.5 radio in an interview on Tuesday.

Salvini added that the cuts weren't nearly enough for the nation's truck drivers, who are planning a nationwide strike the following week.

Salvini is set to meet with freight transport associations on Friday in order to revive a tax credit measure, which is expected to cost "several hundred million euros" to support the sector.

Being highly dependent on imported energy, Italy has reportedly spent 1 billion euros ($1.16 billion) on excise duty cuts for petrol and diesel prices since the measure was first introduced in March, before being extended for the first time in late April, Reuters reported.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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