Italy's Highway Service Stations to Strike

By Liam Moloney

Service stations along Italy's highways will turn off their pumps from late Tuesday to early Friday, demanding measures to cut gasoline costs.

Italian gas prices are among the highest in Europe, a reality reflected in the price of goods and that is hurting domestic demand. The government has raised taxes on gasoline in recent years as part of efforts to reduce the country's heavy debt load.

Alessandro Gilotti, president of Italy's oil association, Unione Petrolifera, said taxes now account for about 60% of the price of gasoline, roughly around 1.8 euros a liter for unleaded. Prices run higher along highways, where stations factor in the royalties and fees charged by highway operators.

Service stations say the steep taxes, along with high oil prices, are compounding the damage to business from a profound recession that has resulted in fewer vehicles hitting the road. Atlantia SpA (ATL.MI), the country's biggest highway operator, says first-quarter traffic along its Italian concessions fell 2.6% on the year.

The industry ministry says taxes aren't the problem. Italy has too many service stations along its highways compared with other European countries and the use of self-service pumps is limited, the ministry says.

"The problem is the [lack of] competition and the network's inefficiency," said Claudio De Vincenti, an undersecretary responsible for energy.

Highway gas stations will suspend service at 1800 GMT Tuesday and resume at 0400 GMT Friday, the pump attendants' association FAIB said in a statement.

Write to Liam Moloney at [e-mail]

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