Italian Economy Minister Domenico Siniscalco has rejected a proposal to cut domestic oil taxes, telling a weekend conference that the reductions would not solve the problem of soaring international oil prices.
"I am convinced that an intervention in excise duties is not the answer," Siniscalco told reporters late on Saturday at a conference in northern Italy.
Earlier this month, Industry Minister Antonio Marzano proposed tying excise duties to the price of oil so that they would be cut when global prices were high and increased when they were low.
On Sunday, he insisted he would forge ahead with his plan, calling for a meeting of his European counterparts.
"I will write to the EU authority tomorrow or Tuesday so that an informal meeting of energy ministers is urgently convened to address the issue of oil prices," he said at a conference in the northern Italian city of Rimini.
Gianluigi Magri, under-secretary of the Treasury under Siniscalco, had backed the idea last week, telling Reuters that Italy should make the proposal at a meeting of European economy ministers on Sept. 11 if global prices remained high.
But Siniscalco rejected it.
"It's an idea that has already been attempted, and doesn't have much of an effect. The savings are wiped out along the rest of the chain," he told local media.
With oil prices hitting new records last week, the issue of tax cuts to offset the impact on consumers has re-surfaced in Europe and especially in Italy.
But the European Commission warned on Friday that member states should honour a recent commitment to avoid unilateral tax cuts in response to high oil prices.
Siniscalco said the government was worried about global oil prices but said encouraging greater competition could help contain costs at the petrol pump.
"This week I met with representatives of big and small distributors, co-operatives and municipal energy companies," he said. "I found everyone open to seeking solutions, which would be in the interest of all."
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