Germany leads EU push for windfall tax on energy firms

September 18, 2026 at 05:18 PM2 min

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Germany is spearheading a push for an EU-wide windfall tax on energy companies' soaring profits. Finance ministers from six member states have called for a common approach to help businesses and citizens cope with high energy prices. The European Commission has not yet proposed such a levy.

Key Facts

Germany, Italy, Poland, Spain, Austria and Portugal signed a letter last month calling for a potential EU-wide levy on energy firms' profits.
The Title Transfer Facility (TTF) gas benchmark was just under €80 per megawatt-hour on Friday, compared to around €35 per MWh before the US-Israeli attack on Iran in late February.
Brent crude was around $102 per barrel on Friday, up from about $70 per barrel before the conflict.
TotalEnergies posted a second-quarter net income of €6 billion, up from €3.6 billion a year earlier.
Diesel in Germany hit an all-time record of over €2.47 per litre on Thursday, while Spain's price was €1.90 per litre.

The Windfall Tax Push

German Finance Minister Lars Klingbeil said there is a clear expectation that the European Commission will put forward proposals for a windfall tax on oil companies. Klingbeil said options should be tabled at the latest by the next meeting of EU finance ministers in October. France's Roland Lescure expressed openness to Berlin's proposal, saying he is willing to see what the Commission comes up with. EU Economy Commissioner Valdis Dombrovskis said the Commission is not putting forward an EU-wide proposal at this stage. A Commission spokesperson said the EU executive will not speculate about whether such measures will be introduced in the future.

Energy Price Surge

The price of gas in Europe has more than doubled and crude oil has risen to over $100 a barrel since US-Israeli strikes on Iran sparked a new conflict in the Persian Gulf. The TTF gas benchmark was hovering just under €80 per megawatt-hour on Friday, compared to around €35 per MWh before the attack in late February. Brent crude was around $102 per barrel on Friday, up from about $70 per barrel before the conflict. Energy majors have almost doubled their profits in the wake of the price surge. Equinor more than doubled its quarterly profits to €3.8 billion in the same period.

Divergent Fuel Prices

Prices at the pump vary widely across the EU. Diesel in Germany hit an all-time record on Thursday, inching past €2.47 per litre. The same litre of fuel costs €1.90 in Spain.