Q8 add up to Eni and SOCAR in limiting fuel prices while Italy assesses new measures to deal with rising energy costs.
Kuwaiti energy Q8 will implement a fuel price cap in Italy for one month starting October 1st thus expanding the response of large oil companies to the rising cost of energy in the country.
The company joins Eni and SOCAR, which have already set limits on the gasoline and diesel sold at their service stations. These measures come at a time when Giorgia Meloni’s government is seeking alternatives to reduce the pressure of energy costs on households and businesses.
At the same time, the oil companies’ initiatives coincide with the debate on the possible application of taxes on windfall profits in the energy sector. The analysis firms Equita and Intermonte believe that these caps could reduce the risk of new tax burdens for companies like Eni.
Q8 joins the fuel price cap in Italy
Q8 Italy announced it will cap the price of gasoline at its service stations during October, the company stated it aims to provide a tangible benefit to drivers, though it did not specify the maximum price it will charge.
The addition of the Q8 carries significant weight within the Italian market, Kuwait Petroleum Corporation (KPC), the company’s owner, has more than 2,900 points of sale and pumps in Italy.
Meloni publicly thanked Kuwait and Q8 for their response to his government’s call to help contain fuel prices.
The measure also expands the coverage of voluntary limits, according to estimates from the National Union of Consumers of Italy, nearly half of the country’s network of service stations could be covered by some type of cap.
Eni and SOCAR set limits for gasoline and diesel
Eni and SOCAR, for their part, have set a maximum price of 2.19 euros per liter for diesel and 1.99 euros per liter for gasoline within their respective initiatives.
The aim is to mitigate some of the impact that rising fuel prices are having on consumers, however, available data shows that the effect on average national prices remains moderate.
On Tuesday, the Self-service gasoline was priced at 2.126 euros per liter, compared to the 2,159 euros recorded on Sunday diesel price it dropped from 2,377 to 2.335 euros per liter during the same period.
On Italian highways, prices continue to be higher, there, gasoline reached 2.18 euros per liter, while diesel was at 2,383 euros.
The caps coincide with the debate on energy taxes
The measures taken by the oil companies also coincide with discussions about a possible tax on the extraordinary profits of energy companies.
The finance ministers of Germany, Spain, Portugal, Italy, Poland and Austria are promoting such an initiative at the European Union level in response to the pressure that high energy costs are putting on consumers.
In Italy, the Minister of Economy, Giancarlo Giorgetti nor has it ruled out the possibility of applying a national levy if a joint response is not reached within the European Union.
Equita and Intermonte believe that the voluntary limits applied by companies could reduce the risk of new tax burdens for Eni and other companies in the sector. This assessment is from the analysts and does not constitute a decision announced by the Italian government.
Meloni seeks to contain energy costs
The Italian government is preparing its 2027 budget in a context marked by rising energy costs and their impact on families and businesses.
The Meloni administration is seeking resources to alleviate this pressure while holding talks with energy companies with the aim of expanding voluntary price caps.
The addition of Q8 significantly increases the coverage of this strategy at Italian service stations, even so, initial data shows that Fuel price caps in Italy have so far resulted in a moderate reduction in average prices.
The evolution of gasoline and diesel prices during October will allow us to see more clearly whether the participation of Q8, Eni and SOCAR manages to extend these limits applied at their stations to the Italian market as a whole.
Source: Reuters
Photo: Shutterstock
