European Affairs Minister Tommaso Foti said Wednesday that Premier Giorgia Meloni's government will extend a cut in fuel duties designed to soften the blow of hikes linked to the Iran war by the end of the week.

The government's 20-day 25-cent-a-litre reduction in duties in response to increases in petrol and diesel prices is set to expire on April 7.

Speaking to Sky Tg24, Foti also mooted the possibility that the European Union could suspend the Growth and Stability Pact and the obligation to keep budget deficits within 3% of GDP in response to the crisis.

"In an emergency situation, emergency responses must be given," Foti said.

"If the war ends in 15-20 days, we can, as they say, hold up.