Six EU states seek September talks on oil windfall tax
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Germany, Spain, Portugal, Italy, Poland and Austria have asked Ireland, holder of the EU's rotating presidency, to put a windfall tax on oil company profits on the agenda of the September 18-19 finance ministers' meeting in Dublin. The request, made in a letter seen by Reuters, follows a roughly 25% rise in oil prices since the U.S.-Israeli war on Iran began on February 28. European diesel prices have surged more than 70% over the same period.
Key Facts
- The six finance ministers asked the Irish EU presidency to put the windfall tax issue on the agenda of the September 18-19 meeting in Dublin.
- Oil prices have risen about 25% since the U.S.-Israeli war on Iran began on February 28.
- European diesel prices have surged more than 70% since the war began, while gasoline prices have climbed around 20%.
- The ministers called for an EU-wide framework to tax windfall profits, including a more targeted analysis of foreign profits of multinational oil companies.
- The ministers also want the results of a European investigation into refiners' margins as soon as possible.
The Letter
In a letter to Ireland, which holds the rotating presidency of the EU, Germany, Spain, Portugal, Italy, Poland and Austria asked the presidency to put the issue on the agenda of the next EU finance ministers' meeting in Dublin on September 18 to 19. "We are experiencing one of the biggest supply shocks in decades, and all over the world there is growing discontent about the rise in the cost of living," the six finance ministers wrote in the letter, seen by Reuters. "Government measures taken so far have not been sufficient to reduce or stabilise prices for businesses and citizens on a permanent basis," the ministers added. The ministers argued that "those who are profiting from the crisis do their part to ease the burden on the general public."
Price Surge
Oil prices have risen about 25% from levels at the outbreak of the U.S.-Israeli war on Iran on February 28. Prices of refined products surged more, with European diesel prices rising more than 70% since the war began and gasoline prices climbing around 20%. The ministers said they wanted to see the results of a European investigation into refiners' margins as soon as possible, to make sure that refineries are not taking advantage of the current energy price spike.
Proposed Framework
"To this end, we need to address the matter of high energy prices by discussing an EU-wide framework to tax windfall profits, taking into account lessons learned in 2022," the letter said. The ministers called for "a more specific analysis of how the foreign profits of multinational oil companies can be included in a more targeted way."
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Six EU states seek September talks on oil windfall tax
