Italian Prime Minister Giorgia Meloni has said her government is nearing an agreement with the European Union on a mechanism to lower the price of gas used to generate electricity, Bloomberg’s Asharq Business website reported on 14 October.
Ahead of a meeting with European leaders, Meloni told Italian lawmakers that technical negotiations with the EU had been intensive and constructive, bringing the government closer to a solution that complied with the bloc’s rules.
She said this would allow Italy to implement its proposed measure to reduce the impact of gas-powered electricity costs on overall electricity prices.
Meloni reiterated that her government wanted to use additional value-added tax (VAT) revenues generated by higher fuel prices to help protect households affected by the crisis.
She also called for scrutiny of an agreement on Russian diesel announced by US President Donald Trump on 9 October, describing it as involving significant risks.
Meloni is under pressure to shield voters from surging energy prices driven by the war with Iran and disruption in the Strait of Hormuz.
Her government has introduced several measures this year to cushion consumers from the impact of the Iran war, including temporary cuts to fuel duties. However, the latest round of duty cuts expired on 6 October, pushing diesel prices higher and prompting renewed calls for government intervention, according to Euronews.
