Italy's fuel prices fall slightly but still above cap set by Eni

Italian fuel ​prices dropped slightly on Monday, but ​remained above the cap of €1.99 ‌for petrol ​and €2.19 for diesel announced last week by state-controlled energy group Eni.

Italy's industry ministry said self-service prices at petrol stations ‌were €2.152 per litre on Monday, from €2.159 on Sunday, for gasoline and €2.369, down from €2.377, for diesel. Prices on highway networks were €2.214 for petrol and €2.420 for diesel. "Despite Eni's extensive distribution ‌network, the impact on national averages was quite small," Italy's National Consumers Union said ‌in a statement.

State Oil Company of Azerbaijan, which owns Italiana Petroli (IP), also said on Sunday it would "progressively" implement a cap, without disclosing its new prices. The rise in energy and consumer prices ⁠due ​to the Middle East ⁠conflict has been a major headache for Prime Minister Giorgia Meloni, who has tried to shield ⁠households and businesses while keeping Italy's strained finances in check.

Meloni's administration has repeatedly renewed temporary cuts ​in fuel excise duties in recent months, spending around €2.8 billion, when also ⁠including tax breaks for truck drivers. The government's latest cut, which is set to expire on October ⁠5, ​only covers diesel and was reduced on Saturday to around 6 cents per litre from 12 cents.

Analysts said the cap could persuade Rome to ⁠back off mooted plans to introduce a domestic windfall tax on energy companies. Economy Minister Giancarlo ⁠Giorgetti has ⁠said he would prefer a coordinated European Union move but has not ruled out such a tax as he prepares next ‌month's 2027 ‌budget.