Italy fast-tracks oil and gas permits in bid to curb import reliance

Italy's cabinet approved measures on Thursday aimed at raising domestic oil and gas output and shortening the time taken to grant drilling licences, as Prime Minister Giorgia Meloni pushed to reduce the country's reliance on imported fossil fuels.

Announcing the decision after the cabinet meeting, Meloni said it made little sense for Italy to buy energy from abroad when it could produce some of it at home.

Under the plan, the government will appoint special commissioners to intervene in cases where local authorities fail to decide on permit applications within the prescribed period. Energy Minister Gilberto Pichetto Fratin said the country could not allow procedures considered strategic for energy security to remain stalled for years because no decision had been taken.

Italy produces roughly 29 million barrels of crude oil annually, most of it in the southern region of Basilicata, along with about 3 billion cubic metres of natural gas a year. Those volumes cover only a small share of the country's fossil fuel consumption.

The government had for some time weighed appointing special commissioners to accelerate renewable energy projects, as energy prices rose amid the U.S.-Iran war. In the end, it opted for steps focused on fossil fuel production. The conflict has disrupted supplies through the Strait of Hormuz, which before the war carried about a fifth of the world's oil and liquefied natural gas.

Italy remains heavily dependent on natural gas, which generates nearly half its electricity — the highest share in the European Union.

To cushion fuel prices, the government introduced a temporary cut in excise duties in March and has extended the relief repeatedly, including on Thursday. The tax measures have cost the state more than €2.6 billion ($3.02 billion) so far, a figure that also includes tax breaks for truck drivers.

The national fuel producers association UNEM said in June that Italy was expected to spend almost €60 billion on energy imports this year, an increase of €8 billion to €9 billion from 2025.

Shell and TotalEnergies are among the companies operating in Italy's hydrocarbon sector, alongside state-controlled Eni.