Italian government approves additional diesel aid amid surging prices

Italy's Government said Oct. 22 it had signed an agreement with road haulage associations to release funds for the sector amid the recent surge in fuel prices.

"The Ministry of Transport has begun making payments, and in the coming days, companies will receive an advance on the tax credit for diesel covering the period from March to August 2026 in full," Prime Minister Giorgia Meloni said in a recorded statement.

Additionally, starting in November, the government will also "unlock outstanding payments for maritime transport, refinancing the tax credit for September-October 2026, adding 106 million euros to the 434 million already allocated in recent months, and extending the deadline for utilizing these credits until March 31, 2027, " Meloni said.

Other conditions requested by the associations will be implemented, such as the option to defer lease payments and a requirement to adjust certain contracts, particularly those offering less protection, to reflect fuel costs, Meloni said.

The government also approved measures to "support farmers and fishermen," including a €60 million grant to offset the cost of agricultural diesel. The measure will provide a discount of up to 45 cents per liter, covering more than 120 million liters. An additional €10 million will be allocated to the fishing sector, Meloni said.

"The agreement has been signed, and payments are already underway," Meloni said.

The measures presented Oct. 22 were a government response to widespread protests across Italy against rising fuel and living costs. Italy's Taranto refinery faced the threat of closure for at least a week due to union action and protests in the region.

Diesel sales down, gasoline sales up

Italian oil product sales fell 2% year on year in September, to 4.31 million metric tons, according to data published Oct. 21 by Italian sector association UNEM.

The decline was led by diesel, with an almost 8% year on year decline to 2.06 million mt, the data showed. A drop in retail sales of around 5% was less significant than a decline of 9.4% in wholesale volumes, UNEM said.

Diesel is "feeling the price impact resulting from the Hormuz crisis more than others, an effect only partially offset by the reduction in excise duty, which expired on October 5," UNEM said.

By contrast, gasoline volume increased 5% year on year to 829,000 mt, while jet fuel volume rose 4% year on year to 508,000 mt.

Gasoline sales hit their highest September total for 16 years, while jet fuel volume hit an all-time September record, UNEM said.

The International Energy Agency said Oct. 15 that its members will accelerate the release of emergency oil stocks, including more than 20 million barrels of diesel.

Platts, part of S&P Global Energy, assessed the European diesel benchmark ULSD 10 ppm CIF NWE Cargo price at $1,479 /mt on Oct. 22, up from $1,470.5/mt on Oct. 22, but still well below a peak of $1,642.25/mt on Sept. In contrast, the price averaged $714.72/mt in February before the Iran war triggered a major energy crisis.