Pump and Circumstance: The Politics of Italy’s Fuel-Price Caps
The Italian government is claiming a victory at the pump. Eni, the country’s largest oil company, has announced a 30-day cap on retail fuel prices. Italy’s second-largest fuel retailer, IP, controlled by the State Oil Company of Azerbaijan Republic (Socar), followed suit, as did the third-largest, Q8. Smaller rivals warn that the caps could squeeze their margins. Politicians, meanwhile, credit their pressure on Eni’s executives for delivering relief to motorists.
While the political appeal is clear, the implications for competition deserve a closer look.
Fuel prices are a…
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