The government led by Mario Draghi extended the cuts to electricity and gas bills for another three months, and allocated another 3.27 billion. At the same time, it introduces new guarantees in favor of storage companies and also provides for a new tax on additional profits made by those who import methane from abroad. Therefore, the decree that extends the abolition of system fees for electricity bills for families and small and medium-sized enterprises to zero also rejects for the third quarter (from July to September) and confirms the reduction of quasi-financial items for gas bills as well. This provision is likely to be converted into an amendment to the Aid Ordinance which is now being considered by the Chamber’s Budget and Finance Committees.
Gasoline, the discount can be up to 35 cents
Regardless of the bills, all eyes are on gasoline, diesel and higher oil prices. Within the first week of July, there will be fuel tax intervention. As is known, the discount on gasoline and diesel expires on July 8 and the government intends to renew it. Not only. Perhaps, given the current level of fuel prices, which for days have greatly exceeded the psychological limit of 2 euros per liter again, we are considering the possibility of bringing in the discount from 30.5 cents today (25 cents plus 5, 5 cents of VAT), set at 22%) at 35. It is not clear if the confirmation or increase in the discount fee is valid for another two months, and thus from July 8 to September 8 (a move that should therefore cover the whole summer), or even the weekend before the 15 August only. It seems hard to think that there will be a decision with so much dire straits that, in the heart of August, it might suddenly bring down gasoline prices with millions of Italians on the road.
According to the economic director of the Democratic Party, Antonio Messiani, we have reached the point where it will be necessary to set a ceiling on fuel prices. Senator Federico Fornaro de Leo once again asked the government to immediately reintroduce administered prices in order to calm persistent price hikes and protect the most vulnerable from increases. However, Development Minister Giancarlo Giorgetti responded that the executive was “committed to finding new tools to mitigate price hikes”, but that there would be no direct price intervention because “the potential consequences of such an intervention, given the very close interdependence of companies in and the oil sector and those in the oil sector.” The productive, industrial and other tertiary sectors, are unpredictable.”
we will see. The executive branch’s interventions on the price front in the coming weeks will not stop there. Yesterday, Labor Secretary Andrea Orlando announced that “in light of the confrontation with the social partners as well”, he would soon intervene to support wages weakened by inflation. “The goal is to be able to do that by summer.” But there are no specifics at the moment.
Gas station workers ready to strike
“Fuel prices continue to rise, although tax cuts continue (-30.5 cents per liter until July 8, with a possible extension) and OPEC+ has announced production increases. The market is a speculative phenomenon at the international level, which pushes fuel above and beyond 2 euros per liter, with very significant and unsustainable repercussions for consumers and for operators who see their profitability gradually decrease, which has fallen to 1.5%, compared to the “explosion of operating costs”: Faib Confesercenti confirms that according to which “there are still a few weeks and the sector risks collapsing.” . Buying fuel and gas. In a globalized market, national choice can lead to supply shortages, intolerable costs, and unbelievable administrative consequences.”
“It irritates the authorities about the prices charged by managers – continues to regulate – which are actually imposed by supplier companies, notes that traders buy and sell – undisturbed – oil stocks and make huge profits by raising prices.; At the same time, the management of the fuel network based on service. Double subjectivity and the offered price seem unsustainable today, when the latter, in full production tax, is more than 2.5 euros per liter.In this scenario, the Italian model risks a jump, with very serious consequences for the supply chain and consumers: it is therefore necessary to re-discuss the agreements and provide Safeguard provisions for management,” continues Vibe.
“In such a dramatic management framework” by Faib Confesercenti, “it is inconceivable that the government would pass on the cost of tax cuts to operators, projected at around one hundred million euros. As speculators get richer, managers are earned to pay an unjustified and unlikely expense. While the government thinks Draghi in the extension of the reduction, and possible new promotion measures, it puts its hand on the immediate economic compensation of the advance paid by managers at the time of the reduction on the stock of products with the payment of production charges and a rule that determines in a structural way, in case of anomalous increases, the mobile excise tax, with automatic recovery mechanisms “. “The managers, who are already mobilized, have been able to ensure a constructive dialogue and confrontation in the difficult critical phase for the country – continues Fabe – however, expensive gasoline cannot be dumped on the weakest and most lucrative link in the supply chain. The government knows that protests are already underway and that in the event that payments for progress are not made, they are ready to strike and close distributors.” If the closure of distributors coincides with the summer exodus, the situation is likely to turn into an explosion. Those present at the gas station are demanding that the inter-ministerial table be reconvened immediately.
Gasoline is gold: What happens to prices (and how to save)
Who really wins in this case
According to the latest weekly analysis The Economist In the refining market, margins for those who convert crude oil into fuel have gone from $5-10 per barrel to currently $60 in the past two years. The reason lies in the low availability of refined products: China is an export at least 7%, Russia is hampered by embargoes, and the United States has low capacity due to plant restructuring problems. So the best equipped operators benefit from exceptional and unexpected profits. The shortage of processing capacity has exacerbated the severe pressure in the availability of products such as diesel, gasoline and jet fuel, spurring refineries to increase production and thus increase demand for crude oil. The increase in demand for crude oil comes at a time when the oil market is facing other upward demand pressures. China has eased restrictions in Shanghai and the increase in demand is accelerating to kick off the summer travel season, especially in the United States.
So the reason why gasoline exceeded 2 euros per liter must be sought primarily in the high costs of refining, while during the “crisis” of 2008, when the average price per barrel was similar today, gasoline reached a maximum of 1.4 euros per liter (given the The different purchasing power of the euro, we are about 1.7 euros). Without government intervention in production duties, gasoline will now cost €2.4. Increases in raw materials and logistics, derivative weight, and financial stakes also contribute to the pump’s final price. In conclusion, it is true that the penultimate link in the chain (the last of which is motorists), gas station workers, earn very, very little in standard increments. They get about 3.5 cents per liter on average. Expenses of all kinds between administration, maintenance, electricity, disinfection, taxes, commissions, etc. are obviously high, as are many professions for that matter. All of this can be quantified at a reduction rate of 77% from 3.5 euro cents per liter.