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Why Prices and Costs Will Increase in Italy in 2026: Transport, Insurance, and Excise Duties
The year 2026 has arrived with a financial sting for millions of Italians. From the moment January began, a wave of price increases started hitting everyday expenses — and many of these are tied to deliberate policy decisions, tax changes, and regulatory measures that were finalized in 2025 and are now being implemented.
But why exactly are prices going up? Let’s break down the three major drivers behind the cost increases in Italy this year — transport, insurance, and excise duties — and explain what’s behind them, how they impact households and businesses, and what to expect moving forward.
1. Rising Costs in Transport: From Fuel to Tolls
A. Accise on Fuel — A Tax Shift with Big Consequences
One of the headline changes this year revolves around a long-planned realignment of excise duties on fuel — particularly, the taxes applied to diesel and gasoline.
Starting on January 1, 2026, the Italian government equalized the excise duty on diesel and gasoline at 672.90 euros per 1,000 liters. This move was part of the 2026 Budget Law and had the effect of raising the excise on diesel by about 4.05 cents per liter, while reducing the excise on gasoline by roughly the same amount.
Why does this matter?
Diesel fuel — long cheaper than gasoline due to lower taxes — is now more expensive at the pump, even exceeding gasoline not seen in years.
For families and businesses that rely on diesel vehicles (which include many delivery drivers, agricultural operators, and small businesses), this shift adds a direct cost to daily life and logistics.
Codacons reported that this diesel tax increase alone will bring about €552 million in extra state revenue — but it also means more spending for consumers and firms alike.
B. Logistics and Freight Costs Are Rising Too
Changes aren’t limited to fuel for cars.
Continue reading…
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