€2 diesel in Italy sparks concerns over Malta’s supply chain

The Association of Trailer and Truck Operations (ATTO) warned that sustained diesel price inflation in European corridors, particularly in Italy, is placing “extreme pressure” on carrier margins.

With Italian retail prices exceeding €2 per litre, ATTO warned that fuel inflation has triggered significant cost escalation across the trailer and freight industry, with estimates suggesting additional weekly sector costs in the region of €80 million. 

ATTO Chairman Joseph Bugeja said that early signs of disruption are becoming more evident.

“Alongside sustained cost pressures, we are seeing isolated instances of fuel supply constraints in parts of Italy. While not yet systemic, these warrant close monitoring,” he said.

Express Trailers Antoine Vella said that while his drivers have yet to experience systemic uplift failures, they have occasionally encountered fuel stations with limited availability. 

“Rising diesel costs are now requiring continuous monitoring and rapid operational adjustments,” he said. 

“With vehicles operating across Europe, refuelling has become more critical and is adding complexity to daily operations. The uncertainty in the current environment could have significant implications for Malta’s logistics chain.”

GMC Transport reported fuel cost increases of 20 per cent to 30 per cent over recent months, with margin compression of up to 40 per cent. Director Mark Buttigieg warned that pricing pressure is now forcing urgent rate reassessments across client contracts.

Concorde CEO Jonathan Vella said operators are responding with tactical mitigation measures.

“We are refuelling earlier, relying on larger motorway stations, and avoiding low fuel thresholds before entering Italy or France,” he said. “Even minor delays can now cascade into missed ferry schedules and trailer rotation disruption.”

While the Italian Government has introduced excise duty reductions and tax credits for transport operators to ease pressure on the haulage sector,, industry feedback suggests these measures are being outpaced by the scale of cost increases.

Meanwhile, associations have sounded the alarm that part of the recent diesel price escalation may be driven by speculative pricing dynamics.

Mr Bugeja said that while domestic fuel pricing measures offer the Maltese economy partial insulation from inflation, Malta remains exposed to external corridor volatility.

“With no overland alternatives, Malta is entirely dependent on the reliability of European transport corridors. Around 55,000 trailer movements annually underpin national trade flows, and any sustained disruption, whether it’s cost-driven or physical, can rapidly impact economic stability,” he said.