Italian Petrol Prices Burdened By Highest EU Taxes
17 July 2013
Posted by: Author: Ulrika Lomas
Author: Ulrika Lomas
Petrol and diesel prices at Italian filling stations are being over-burdened by the weight of taxes, according to CGIA Mestre (the Italian association of sole traders and small businesses).
CGIA has found that petrol pump prices in Italy are the second highest in the European Union (EU), after those in the Netherlands, but that diesel prices confronted by Italian motorists when filling their vehicle are, in fact, the highest. In both cases, the association lays the blame for the high fuel prices on high taxation.
In an exercise completed on July 13 this year, the price of a liter of unleaded petrol in Italy was EUR1.74 (USD2.28), as against the highest EU price in the Netherlands of almost EUR1.80. Out of that price, EUR1.03 is taken in tax (excise duty plus value added tax), as against nearer EUR1.06 in the Netherlands.
With regard to the EU average, petrol pump prices in Italy are more than EUR0.20 higher. Given that Italian basic fuel prices are in line with the European average, the price discrepancy can be attributed solely to the incidence of taxes, which, at 59.1 percent, is 5.4 percent higher.
On the other hand, diesel prices for the Italian motorist are the highest in the EU, at just over EUR1.62; or almost EUR0.23 over the European average. The incidence of taxes on Italian diesel prices is 55.4 percent; 8.5 percent over the European average.
Giuseppe Bortolussi, General Secretary of CGIA, commented that: "Given 80% of Italian commerce is transported by road, it cannot be excluded that the increase in fuel prices seen recently could force upwards the prices of the major consumer goods. In addition, we should not forget that, because of the fuel price rises, entire economic sectors, such as small transport businesses, vehicle rental companies, taxis and salesmen, risk setbacks in their profitability."