Impact estimation of the “display the regional average fuel prices” obligation in Italy

This study estimates the impact of the so-called “display the regional average fuel prices” obligation that was introduced in Italy in 2023 and lasted until February 2024. The analyses rely on official daily data on fuel prices and gas stations’ records, as well as on official statistics related to the Italian municipalities. A rigorous Regression Discontinuity in Time methodology is applied. The analyses are conducted at the gas station level but they are disaggregated by the Italian Regions, considering both four different fuel types (gasoline, diesel, autogas, and methane gas) and two service modes (served and self-service). The results suggest a non-straightforward effect of the obligation, with significant differences across fuel types and service modes. Overall, there is an observed increase in the absolute difference between the daily price at the gas station and the Regional daily average price for served gasoline, while heterogeneous effects are found in relation to other fuels.