Rome’s cabinet approved an extension of the emergency fuel‑tax relief until May 1, keeping the €0.25 per litre cut on gasoline and diesel in place. The measure adds roughly €500 million in extra spending, Finance Minister Giancarlo Giorgetti said on Friday. Prime Minister Giorgia Meloni framed the move as a response to soaring energy prices triggered by the Iran conflict.

The extension builds on a similar‑sized relief package that was due to lapse on April 7, effectively doubling the fiscal support for motorists and businesses. Earlier this spring, the Meloni government also cut taxes on liquefied petroleum gas, urged oil firms to curb pump‑price increases and pushed Italy’s coal‑phase‑out to 2038. Giorgetti warned that a protracted Iran war could force the EU to relax its 3% deficit rule.

Adding €500 million to the 2024 budget tightens Italy’s already strained public finances, prompting analysts to question the sustainability of such ad‑hoc subsidies. While the tax cut cushions consumer sentiment at the pump, it also narrows the fiscal space needed for the government’s growth‑boosting reforms. The extension underscores Rome’s willingness to absorb short‑term cost spikes rather than let energy inflation erode domestic demand.