Eni sets a price cap for fuels: 1.99 euros for petrol and 2.19 for diesel

Yesterday Eni announced that it had set "a maximum limit (price cap) to the price of fuels marketed by Enilive equal to 2.19 euros per liter for diesel and 1.99 euros per liter for petrol (approximately 17 cents less than the current average levels). The price cap is correlated to the tax relief on excise duties in force and will be applied starting from 28 September, for an initial duration of 30 days, with the possibility of extension until the end of the year, depending on market and supply trends".

See also: Fuel, government discount drops. Eni puts a price cap

Palazzo Chigi, with a note, expressed its appreciation: "The government thanks Eni for the important initiative of placing a maximum ceiling on the price of petrol and diesel. A laudable act of attention to Italy, which goes in the desired direction of controlling the high cost of fuel which, due to the difficult international context, is affecting Italian families".

For further information: Fuels, Eni sets price caps on petrol (1.99) and diesel (2.19). Government thanks

On 16 September, the Council of Ministers had extended the cut in excise duties and VAT on diesel, but had reduced it: from 17 cents per litre, it had dropped to 12.2 cents from 18 to 25 September, and to 6.1 cents from 26 September to 5 October. Eni's move therefore came on the eve of the reduction of the government discount.

Read also: Diesel excise duty cut, extension until October 5: how it works

Fuel prices, especially diesel, rose today coinciding with the halving of the excise duty cut (from 12.2 to 6.1 cents). The increase also affects petrol but for diesel it is lower than the tax increase. Based on the latest data collected by the Mimit fuel price observatory, the average self-service price along the road network is 2.158 euros per liter for petrol and 2.357 euros for diesel (yesterday 2.154 euros per liter for petrol and 2.338 euros per liter for diesel). On the motorway network, however, the average self-service price is 2.252 euros per liter for petrol and 2.439 euros per liter for diesel (yesterday 2.247 euros per liter for petrol and 2.421 euros per liter for diesel).

"The League appreciates Eni's decision to voluntarily renounce millionaire proceeds: a concrete and responsible signal, in a particularly difficult moment for families and businesses", said Matteo Salvini's party. "The hope is that banks and other large companies in the energy and oil sector will also follow this example." From Forza Italia, Deputy Prime Minister Antonio Tajani comments: "This is the path we prefer: responsibility, collaboration and market, not dirigiste interventions or new taxation built around the concept of extra profits".

However, the opposition is unleashed. For Democratic Party senator Francesco Boccia, "if Eni could intervene, why didn't it do so before, and why didn't the government ask it? Eni is not a benefactor to whom Palazzo Chigi must thank: it is a large Italian company over which the State exercises control". Avs MP Angelo Bonelli says that "Eni's decision shows that the capped price was possible, as we had always asked for". Nicola Fratoianni also reiterates: "This move reveals that it could have been done a long time ago to alleviate the difficult situation of families and businesses." The secretary of the CGIL, Maurizio Landini, is also critical: "Why doesn't the government intervene on the extra profits of companies, and why doesn't it reduce excise duties, not for a month, but permanently? Without making commercials."

Massimiliano Dona, president of the National Consumers Union, speaks of "excellent news. We can only express our consent and applause for this initiative. Faced with the inaction of this government which is doing less and less for expensive fuel, we can only be happy that companies listed on the stock exchange are doing more than politics does".

"Positive news in a valley of tears", comments Assoutenti. "We believe there are all the conditions for the government to intervene by setting by law a temporary price cap on fuel prices, as requested by the petrol station associations themselves". According to president Gabriele Melluso, "the decision to resort to the price cap mechanism is positive for two reasons: firstly it will allow immediate savings for motorists who refuel at Enilive plants, on the other hand it could trigger a virtuous competitive push, pushing other oil companies to adopt similar measures so as not to lose market share".

For Codacons, Eni's price cap "will result in a saving of 10.4 euros on a full tank of diesel" and "11.2 euros for a full tank of petrol", considering the price lists at the pump and the reduction in the discount on excise duties. "This is an excellent initiative to control the unabated growth of prices at the pump, and we now hope that other oil brands will follow Eni's example by introducing a price cap."

See also: Diesel and petrol prices, Italy among the European countries most affected by high fuel prices