Why does it cost so much to fill up in Italy? From the 'Malta paradox' to the excise duty node, all the comparison data with other EU countries
The article discusses why fuel prices in Italy are among the highest in the European Union, despite being lower than some other countries when taxes are excluded. According to the latest data from the European Commission, Italy ranks seventh in the EU for gasoline prices at the pump, while diesel ranks 21st. The article highlights the 'Malta paradox,' where Malta, which imports fuel from Italy, has significantly lower prices due to state subsidies and financial hedging contracts. It explains that Italian fuel prices include international market costs, refining, transportation, storage, distribution, and taxes such as excise duties. The article also references analyses suggesting that reducing excise duties might not be the best solution and mentions political actions related to fuel pricing.
Italy is the seventh European Union country for the price of gasoline at the pump, but drops to twelfth when considering prices excluding taxes. The Italian government has long been under scrutiny for its high fuel costs, which have become even more pronounced this summer. Many travelers who spent their holidays abroad have asked how it's possible that filling up a car in Italy is so expensive. Crossing into neighboring countries such as Slovenia, Austria, Croatia, or Switzerland reveals significantly lower fuel prices. This discrepancy is confirmed by data from the European Commission. According to the latest bulletin dated August 27, Italy ranks seventh among the 27 EU member states for the price of gasoline at the pump, with an average of €2.003 per liter. Ahead of Italy are Denmark, Netherlands, Germany, Finland, France, and Greece. The average price of diesel is €2.115 per liter, placing it 21st highest in the EU. Malta stands at the opposite end of the spectrum, with an average gasoline price of €1.34 per liter. This situation is intriguing because Malta, one of the least industrialized EU countries, imports all its fuels, including from Italy. How can a product originating from Italy cost less in Malta than in Italy itself? As explained by an investigation from Corriere dell’Umbria, the fact that a fuel is refined, purchased, or transported from Italy does not automatically mean it should be sold at the same price elsewhere. Once the fuel arrives at its destination, the final price depends on several factors: taxes applied by the state, distribution costs, market organization, and more. In Malta, for example, the government primarily purchases fuels through financial contracts that hedge against international price fluctuations. Additionally, direct state subsidies artificially reduce fuel prices, shifting the burden onto general taxation. In Italy, the price at the pump includes multiple components. First, there is the cost of the product, determined by international oil prices and refining costs. Then there are transportation, storage, and distribution expenses. Finally, taxes play a crucial role. In Italy, these mainly consist of excise duties and VAT. Excise duty is a fixed tax per liter, while VAT is a percentage applied to the final price, which includes the excise duty. Therefore, when the industrial price of gasoline rises, it affects not just the cost of the fuel but also the amount of VAT paid by consumers. When comparing fuel prices excluding taxes, the impact of taxation becomes evident. The European Union sets a minimum level of excise duty on gasoline, but each member state can impose higher rates. To understand how much taxation influences the final price, one can refer to the European Commission’s weekly reports, which distinguish between the final consumer price and the price excluding taxes. In Italy, the price of gasoline excluding taxes is approximately €0.9.
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The article discusses why fuel prices in Italy are among the highest in the European Union, despite being lower than some other countries when taxes are excluded. According to the latest data from the European Commission, Italy ranks seventh in the EU for gasoline prices at the pump, while diesel ranks 21st. The article highlights the 'Malta paradox,' where Malta, which imports fuel from Italy, has significantly lower prices due to state subsidies and financial hedging contracts. It explains that Italian fuel prices include international market costs, refining, transportation, storage, distribution, and taxes such as excise duties. The article also references analyses suggesting that reducing excise duties might not be the best solution and mentions political actions related to fuel pricing.
Bias read (Center): The article presents factual comparisons between countries, analyzes tax policies, and references expert opinions without overtly favoring any political stance. It includes both official data and external analyses but avoids taking a clear ideological position.
Why factuality (85): The article references the European Commission's Weekly Oil Bulletin as a primary source, aligning with the reported prices for gasoline and diesel in Italy. It correctly identifies Italy as the seventh highest priced country for gasoline and twentieth highest for diesel, matching the data from the
Why objectivity (75): The article presents information in a journalistic style, highlighting the contrast between Italy and Malta while explaining the factors affecting fuel prices. While informative, it uses emotionally charged language such as 'paradosso' (paradox) and frames the situation in a way that emphasizes the
The article discusses the resurgence of debates around 'extraprofits' taxation in Italy, particularly in light of rising fuel prices and geopolitical tensions. It references Prime Minister Giorgia Meloni’s past attempt to impose a tax on extraordinary profits from energy companies and banks, which was partially successful for energy firms but met opposition from Forza Italia regarding banks. The author argues that while such taxes may seem unfair, they target profits derived from external factors like wars, rather than internal business performance. The piece highlights the moral and economic dimensions of taxing these profits, suggesting that they often benefit shareholders and foreign funds rather than the companies themselves.
Bias read (Progressive): The article frames the issue of taxing extraprofits as a moral imperative, emphasizing fairness and criticizing the disproportionate benefits received by foreign investors and executives. While it acknowledges the economic arguments against such taxes, it leans toward supporting regulation to ensure
Why factuality (80): The article references the European Commission's Weekly Oil Bulletin explicitly and provides specific price data aligned with the primary source. It accurately places Italy in the EU rankings and discusses tax differences between countries. The information is well-supported by the primary document a
Why objectivity (70): The article maintains a relatively neutral tone while discussing the high cost of fuel in Italy. It presents facts objectively and avoids overtly biased language, though it does highlight the disparity in prices between Italy and Malta, which could be seen as slightly emphasizing the problem.
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