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Bloomberg
Italy’s government is set to approve a new set of measures to cushion families and businesses from continuing increases in energy and fuel prices.
The new aid won’t require additional borrowing for the time being, Prime Minister Mario Draghi said during a press conference in Rome. The package is set to be approved at a cabinet meeting.
Financing will come partly from extra tax revenue because of the price spikes, and from a levy on energy companies profiting from the current market conditions, people familiar with the matter said.
The government plans to cut the cost of fuel paid at the pump by at least 0.15 euros, a target that could cost Rome about 300 million euros ($333 million) a month, the people said, asking not to be named because they’re discussing confidential plans.
Overall, the measures may be worth as much as 5 billion euros though this could change before approval, according to the people.
A spokesman for the
government declined to comment.
Oil markets have experienced huge swings this month, with Brent crude surging to nearly $140 a barrel before tumbling back to slightly above $100 a
barrel. Italy has already spent about 16 billion
euros to mitigate the impact of higher energy prices on consumers.