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Market Chatter: Italy Resumes Excise Duty Cut After Energy Cost Protests

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Italy has restored a cut on excise duty applied to diesel against a backdrop of protests over rising energy costs and despite concerns over the affordability of the measure for the public purse, Reuters reported on Monday.

Italian Finance Minister Giancarlo Giorgetti told reporters the government had adopted a decree cutting diesel prices by 0.17 euros ($0.19) per liter through Aug. 6, with an estimated cost of 125 million euros in lost tax revenue. There would be separate cuts for haulers and farmers.

He said that the government may decide on further measures at a cabinet meeting on Aug. 4. Italy and Germany are among the worst hit in Europe due to the combination of large industrial sectors and heavy reliance on fossil fuels in both.

Italy has already spent about 2 billion euros on excise cuts since they were first introduced in March at the outset of the Middle East conflict, the article said, drawing criticism from the European Commission and the International Monetary Fund.

(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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