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What makes up the diesel price in Italy?

Data from 20 July 2026 · European Commission Weekly Oil Bulletin

You pay €2.038 per litre for diesel in Italy. Of that, €1.040 (51.1%) is tax and €0.998 is the product itself — crude oil, refining, transport and the retailer's margin combined. The tax is made up of €0.673 excise duty, €0.000 in other levies, and €0.368 VAT at 22%.

Fuel is one of the most heavily taxed products in Europe, and the split between what the fuel costs and what the state collects explains most of the price gap between neighbouring countries. Here is exactly how the money you pay for each litre is split up in Italy, using the European Commission's weekly figures from 20 July 2026.

The €2.038 litre, component by component

Product cost 49% Excise duty 33% VAT (22%) 18%
Component Per litre Share
Product cost €0.998 48.9%
Excise duty €0.673 33.0%
Other levies €0.000 0.0%
VAT (22%) €0.368 18.0%
Total tax €1.040 51.1%
Pump price €2.038 100%

What each part actually is

Product cost — €0.998

The fuel itself: crude oil, refining, storage, transport to the station and the retailer's margin. The European Commission reports these as a single figure. This is the part that moves when oil markets move — and it is broadly similar across the EU, because everyone buys on the same world market.

Excise duty — €0.673

A fixed amount per litre set by the national government, charged whatever the oil price does. Excise is the single biggest reason a litre costs more in one country than in its neighbour: it does not fall when crude falls.

Other levies — €0.000

Country-specific levies on top of excise — carbon charges, biofuel obligations, strategic stock fees, regional surcharges. Small in most countries, but they are the part that changes most often as climate policy tightens.

VAT (22%) — €0.368

Value added tax at 22%, applied to everything above — including the excise duty. That is why VAT is a tax on a tax, and why a rise in crude prices raises the tax take automatically.

What that means for a full tank

Filling a 50-litre tank in Italy costs about €101.90 at today's price. €52.02 of that goes to the state and €49.88 covers the fuel itself. Put differently: roughly 51.1% of every fill-up is tax.

Italy versus the rest of the EU

At 51.1%, the tax share in Italy is 9.0 percentage points above the EU average of 42.1%. Across the 27 member states Italy ranks 2nd by tax burden on diesel.

The most heavily taxed diesel in the EU right now is in Malta (54.3%); the lightest burden is in Sweden (26.6%).

How it has changed over the past year

We do not yet have a full year of comparable breakdown data for Italy.

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Frequently asked questions

How much of the diesel price in Italy is tax?

51.1% — €1.040 of every €2.038 litre. That is €0.673 in excise duty, €0.000 in other levies and €0.368 in VAT.

Why is fuel cheaper in some neighbouring countries?

Almost always because of excise duty, not the fuel itself. Every EU country buys on the same world market, so product cost is similar everywhere (€0.998 per litre here). What differs is the fixed duty each government adds — and the VAT rate applied on top of it.

Does VAT apply to the excise duty as well?

Yes. VAT at 22% is calculated on the full price including excise, so it is charged on the tax too. This is why the total tax take rises automatically whenever crude oil gets more expensive.

When does this data update?

Weekly. The figures come from the European Commission's Oil Bulletin, which member states report every Monday and the Commission publishes mid-week. The numbers on this page are from 20 July 2026.

What is included in "product cost"?

Crude oil, refining margin, storage, transport to the filling station and the retailer's own margin — reported by the Commission as one combined figure of €0.998 per litre. It is not broken down further at source.

See also

Fuel price breakdown in other countries

Source: European Commission — Weekly Oil Bulletin. Data from 20 July 2026 · European Commission Weekly Oil Bulletin.