Why prices and costs will increase in Italy in 2026: transport, insurance and excise duties

Excise duties on petrol decrease by 4.05 cents per litre.

👉 The result is that diesel becomes on average more expensive than petrol at the pump, which did not happen often in the past.

Why did the government make this change?
Alignment of excise duties for environmental reasons: for years, diesel has enjoyed more favourable tax treatment than petrol. The European Union considers this disparity an environmentally harmful subsidy, because it incentivizes more polluting diesel vehicles.

Fiscal objectives: the increase in excise duties on diesel brings more revenue to the state coffers (we are talking about 552 million euros in 2026), useful for financing part of public spending and contributing to budget balance.

👉 Direct consequence: at least for diesel, consumers will pay about 5 cents more per liter, a direct effect of excise duties + VAT.

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❗ Important note: Actual prices at the pump will also continue to be influenced by the global oil market and supply/demand dynamics, but the increase related to excise duties is a legally certified increase.

🛡️ 3. Insurance: significant increases
Another front of rising costs concerns the vehicle insurance sector, in particular motor liability and ancillary warranties.

📈 3.1 Higher prices of policies
According to recent sources, insurance policies could increase by between 5% and 10% compared to 2025, with significant differences between geographical areas and types of contracts.

👉 This increase is not mainly caused by the claims market, but by tax changes on some ancillary guarantees.

🧾 3.2 Increase in the rate on ancillary guarantees
The 2026 Budget Law has increased taxation on “driver accident” guarantees:

from the current rate of **2.5% it goes to 12.5%.

👉 Since many motor liability policies include mandatory or widespread ancillary guarantees, the increase in the tax rate is directly reflected in the final cost of the policy for the customer.

📊 Practical effect: In addition to the direct cost of insurance, many people will also have to pay more for ancillary coverage that used to cost less due to taxes.

🧾 4. Excise duties and new taxes: higher costs on consumer goods
🚬 4.1 Excise duties on cigarettes and smoking products
The Budget Law introduced increases in excise duties on cigarettes, cut tobacco and electronic cigarette products.

💡 The result on prices will be significant: for smokers it means higher costs per package, while for consumers of liquids or alternative products the prices of these goods increase.

👉 This is a classic example of indirect taxation: not only are taxes increased to collect revenue, but an attempt is also made to discourage behaviors considered harmful to health (protection of public health).

📦 4.2 Parcel and service contributions
From 2026, there is a contribution of €2 for each parcel sent from non-EU countries under €150, part of the new tax measures for online commerce.

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