Six European Union countries are calling for a discussion on taxing oil companies’ windfall profits to be placed on the agenda of the next meeting of EU finance ministers, scheduled to take place in Dublin in September.
Germany, Italy, Austria, Poland, Portugal and Spain are backing the creation of an EU-wide framework to tax windfall profits earned by oil companies, as their earnings and refining margins have risen sharply amid the Middle East crisis.
In a joint letter addressed to Ireland’s finance minister, as Ireland currently holds the rotating presidency of the Council of the EU, the six countries called for the issue to be discussed at next month’s meeting of EU finance ministers in Dublin.
The signatories argue that oil companies’ overall profitability and refining margins have increased more rapidly than crude oil prices. They also point to the impact of rising energy costs on European consumers and the broader cost-of-living pressures.
The six countries are seeking to draw on the experience of the temporary levy introduced in 2022, following the outbreak of the war in Ukraine, as the EU considers a possible new common framework for taxing exceptional profits.
The proposal comes as energy markets face significant disruption linked to the Middle East crisis, raising concerns over fuel prices and the cost of living across Europe.
At this stage, however, the European Union has not announced plans to introduce a new levy on oil companies. The proposal would require broad support from EU member states before it could be implemented.
