• Italy's government has approved a temporary cut to the diesel tax, reducing the price of diesel by €0.17 per litre until August 6, in response to rising fuel prices.
• The measure, costing the state around €125 million, was justified by the tense situation in the Middle East and the near-total closure of the strategically important Strait of Hormuz, but does not apply to petrol.
• Prime Minister Giorgia Meloni described the cut as a "swift and responsible response" to the situation, with further steps to be discussed at a Cabinet meeting next Tuesday to determine what happens after August 6.

Italy's government has again approved a temporary cut to the diesel tax in response to rising fuel prices, passing a decree on Monday evening that will reduce the price of diesel by €0.17 ($0.19) per litre until August 6.

The measure, backed by Prime Minister Giorgia Meloni's Cabinet, does not apply to petrol.

Finance Minister Giancarlo Giorgetti said the measure would cost the state around €125 million. The move was justified by rising diesel prices resulting from the currently tense situation in the Middle East and the near-total closure of the strategically important Strait of Hormuz.

In Germany, the coalition government ruled out a further fuel tax discount after cuts in May and June.

Meloni: 'Swift and responsible response'

In a post on X late Monday, Meloni said the cut did not resolve the underlying problem.

"But it is a swift and responsible response that takes into account the limited financial room we have available, as well as the constantly changing international situation," she wrote. Her government would monitor how the situation develops and prepare further steps, she added.

What happens after August 6 is to be discussed at a Cabinet meeting next Tuesday. Giorgetti said the government would examine at that session whether tax revenues would allow the current measure to be extended.