Alleged violations of fuel prices in Italy have put Eni and ExxonMobil in the crosshairs, amid a steady rise in prices.
Today, Monday, January 16, 2023, the Italian antitrust authority said that the offices of several oil companies, including Italy’s Eni and ExxonMobil’s Eso Italiana unit, were searched over alleged fuel price violations, according to Reuters.
The authority, which carried out the inspections with the help of the Italian tax police, said it was investigating irregularities regarding prices charged at petrol stations that were higher than advertised, as well as failures in advertising fuel prices.
The competition watchdog said Eni, Esso, Italiana Petroleum, Kuwait Petroleum Italia and Tam Oil had failed to take appropriate measures “to prevent and address this illegal behavior that harms consumers”, according to information seen by the specialized energy platform.
Fixing fuel prices in Italy
Italian media had reported – earlier this month – that the Public Prosecutor’s Office in Rome announced the opening of an investigation into the rise in fuel prices in Italy, on Monday, January 9, 2023, according to what was reported by the “The Local” platform (The Local). ).
This investigation came after the Italian consumer protection association Kodacons claimed that there was price fixation; Given that the prices of petrol and diesel remain high despite the drop in oil prices.
Gasoline prices returned to over €2 ($2.17) per liter in some parts of Italy at the beginning of January 2023; It came to €2.24 ($2.43) and €2.09 ($2.26) per liter at petrol stations in parts of Sicily and Sardinia, respectively.
Diesel prices have reached 2.48 euros ($2.69) per liter at some stations on major highways, according to Kodacons.
The recent return to higher prices also comes after the government ended a fuel surcharge measure that had been in place since March 2022, a move that angered many amid the cost of living crisis.
High fuel prices in Italy
The Kodacons association said that, at the start of January, the price of a full tank of fuel was €8.9 ($9.64) more than it was at the end of last month.
The association estimated that motorists in Italy face fuel costs of more than 214 euros ($231.79) in the current year (2023) compared to 2022.
The association’s president, Carlo Renzi, explained that the association submitted reports based on the findings of the Italian financial police and 104 prosecutors’ offices across Italy.
“Fuel prices seem to be out of control, and after the tax cuts are rescinded, we are seeing sharp price increases at gas stations across the country, which in no way seem to be justified by oil price trends,” Renzi told reporters.
Fuel price developments in Italy
Fuel prices rose in Italy after the government scrapped a tax cut, first introduced by former prime minister Mario Draghi in the first half of 2022, when petrol exceeded €2 ($2.17) per liter.
Italian Economy Minister Giancarlo Giorgetti said the government may cut tariffs to curb fuel price hikes in Italy, in the face of mounting public anger that could pose the first major challenge to Prime Minister Giorgia Meloni.
Giorgetti assured lawmakers that the government reserves the right to reduce production tariffs again “in connection with any confirmed increase in fuel prices,” according to Reuters.
For her part, Prime Minister Giorgia Meloni defended the decision not to extend the rebate on fuel prices, saying it would have cost 10 billion euros ($10.83 billion), explaining that available resources would instead be spent on more targeted measures for the poor.
Giorgetti said Rome is considering additional relief measures; Including a temporary price cap under the European Commission’s so-called “two-tier approach”.
In Italy, more than 50% of petrol and diesel prices are subject to excise duties and sales value added tax.
This year’s Italian budget allocated more than 21 billion euros ($22.75 billion) to help businesses and households pay their electricity and gas bills, mainly by subsidizing energy-intensive businesses and low-income households.
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