Oil giants cash in on the US-Iran conflict. Can an EU-wide tax on oil profits ease the energy crisis?

Since the US-Iran conflict began on February 28, Europeans have faced higher energy bills. The added costs have gone straight into large oil companies’ pockets.

Greenpeace estimates that oil companies earned €36 billion more from EU diesel and petrol sales than before the war, based on the difference between crude oil and net fuel prices. That’s €154.4 million a day. Diesel accounts for €28.2 billion and petrol for almost €7.8 billion.

While the industry rejects claims of profiteering at citizens’ expense, member states are calling for an EU-wide tax on these so-called “windfall” or “super” profits. EU energy ministers discussed bill-cutting measures on October 29 but reached no decision on the tax itself.

The winners Europe’s dependence on fossil fuels is what makes these profits possible. “Oil, gas and coal make up nearly 60% of total final energy consumption in the EU”, and the bloc hardly produces any of it at home, explained Noah Gordon, senior policy fellow at the European Council on Foreign Relations.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →