President Ilham Aliyev's Contribution Helps Italy Address Rising Fuel Prices Amid Global Risks

(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 29. The decision by Italiana Petroli (IP) to cap fuel prices across Italy is a practical outcome of the strategic partnership between Azerbaijan and Italy, which has been consistently developed under the policy of Azerbaijani President Ilham Aliyev. Italian Prime Minister Giorgia Meloni has welcomed the decision.

“Following Eni, IP has also chosen to cap fuel prices across the entire national territory. This is an important signal of attention to Italian families, confirming that it is possible to make a concrete contribution to containing the rising cost of fuel. I wish to thank the President of Azerbaijan, Ilham Aliyev, for this gesture of attention that strengthens our cooperation, and the president of Socar, Rovshan Najaf,” Meloni wrote on her official X account on September 28.

For Italy, the decision is significant amid the government's focus on energy costs and household purchasing power. Capping fuel prices directly reduces household expenses, but the economic impact extends further: petrol and diesel prices affect carriers, logistics, industry and services. Measures by major players in the fuel market can help contain part of these transportation costs.

The relevance of such measures is linked to rising fuel prices in Italy amid geopolitical instability in the Middle East and related disruptions to global supply chains. Meloni's government had repeatedly extended temporary cuts in fuel excise duties, allocating around 2.8 billion euros to such measures, including support for transport operators. These measures only partially contained the increase, while average prices at filling stations remained high. Against this backdrop, the authorities called on major market operators to contribute to price stabilization. After Eni introduced a price cap, IP's similar move provided a practical response to that call.

This is where IP's role in the broader economic cooperation between the two countries becomes particularly significant. SOCAR acquired the Italian company from API Holding, making the deal one of the notable steps taken by the Azerbaijani state oil company in the European downstream market. According to Fitch Ratings, IP operates two refineries in Ancona and Novara with a combined capacity of around 10 million tons per year, approximately 4,500 filling stations, as well as significant storage and logistics infrastructure. This gives SOCAR a direct presence in the Italian economy.

The acquisition of IP has enabled SOCAR to operate within a major national fuel network while establishing a long-term partnership between the two sides. This presence is already extending into other areas. SOCAR said its partnership with Italian football for 2027–2030, with an option to extend it through 2032, reflects the company's commitment to its long-term operations in Italy.

This development fits into a broader model of Azerbaijani-Italian relations that is gradually moving beyond traditional energy cooperation. Speaking during a joint press statement with Meloni in Baku on May 4, President Ilham Aliyev, referring to relations between the two countries, said:“One of the primary directions of our relations is partnership in the energy sector. Here, too, we have supported each other as reliable partners for many years.”

Energy ties have provided the foundation for further expansion of economic cooperation. According to President Ilham Aliyev, Azerbaijan exported 25 billion cubic meters of natural gas in 2025, of which 9.5 billion cubic meters went to the Italian market. Azerbaijan ranks second among Italy's oil and gas suppliers.

However, the importance of the Italian market for Baku extends beyond energy supplies.

“The Italian market is of great interest to us. Under the leadership of Madam Prime Minister, the Italian economy is developing successfully. Over the past few years, the State Oil Fund of Azerbaijan has invested approximately $3 billion into the Italian economy. Issues regarding the attraction of these investments into new projects were also discussed,” President Ilham Aliyev said.

Energy cooperation is therefore gradually becoming the foundation for a broader investment relationship. On September 25, Maurizio Tamagnini, founder and CEO of Fondo Strategico Italiano, said at the 2nd Azerbaijan International Investment Forum in Baku that plans were being developed to establish manufacturing facilities of Italian companies in Azerbaijan's free economic zones. FSI, together with AZPROMO and the State Oil Fund of Azerbaijan, is working to expand cooperation between Italy, Azerbaijan and Central Asia.

In this context, energy is becoming not a standalone area of cooperation, but one element of broader industrial cooperation. Italian companies including Eni, Leonardo and Tecnimont already have a presence in Azerbaijan. The next stage could involve localizing production, developing supply chains and turning Azerbaijan into a manufacturing and logistics hub serving the wider region.

“If we can really connect two regions, such as continental Europe, Italy, with Azerbaijan and Central Asia, and Italian technology companies come here following the major companies that are already operating here, this will be a modern way of building a partnership,” he said.

This approach is consistent with the position outlined by Meloni during her May 4 visit to Baku:“We must work not only on supply volumes but particularly on the quality of industrial partnership across all sectors.” She highlighted Azerbaijan's role as a hub between Europe and Asia and Italy's readiness to serve as a “privileged gateway to the European market.”

Against this backdrop, SOCAR's acquisition of IP takes on additional significance. Azerbaijan gains a direct presence within one of Europe's largest economies, while Italy gains an opportunity to deepen cooperation with an energy company that is both a major energy supplier and an investor.

Cooperation is also expanding beyond bilateral projects. On September 26, SOCAR and Eni completed a deal under which the Azerbaijani company acquired a 10-percent stake in the development of the Baleine field in Côte d'Ivoire. This broadens the geographic scope of the two companies' shared interests and gives SOCAR access to Africa's upstream sector.

Taken together, these developments point to a changing structure of Azerbaijani-Italian relations: from energy trade and investment toward direct corporate presence, industrial cooperation, infrastructure and long-term commercial ties.

President Ilham Aliyev's consistent policy has played a key role in shaping this model. Over many years, Azerbaijan and Italy have built a strategic partnership in which energy cooperation serves as the foundation for broader economic engagement. This approach has created the conditions for a transition from oil and gas supplies to investment, industrial cooperation and the direct presence of Azerbaijani capital in the Italian economy. IP's decision on fuel prices has become one of the most visible practical manifestations of this long-term approach.

For the Italian economy, the development of this model means opportunities to attract additional investment, expand industrial cooperation and strengthen energy resilience. For Azerbaijan, it means a broader presence in the European market and new opportunities for companies and capital to enter international markets.

In this sense, IP's fuel pricing decision is not an isolated commercial move, but part of an established network of business ties. As cooperation deepens, the energy partnership between Azerbaijan and Italy can provide a foundation for new manufacturing projects, investment and technology exchange, creating additional economic opportunities for both countries.

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