Six EU States Seek September Talks on Windfall Tax for Oil Firms

Six European Union member states are pressing for a bloc-wide discussion on taxing the windfall profits of oil companies, according to a letter sent to Ireland, which currently holds the EU's rotating presidency. The request, made by the finance ministers of Germany, Spain, Portugal, Italy, Poland and Austria, seeks to place the issue on the agenda of the next EU finance ministers' meeting, scheduled for September 18-19 in Dublin.

The ministers argue that current government measures have failed to provide lasting relief for businesses and citizens facing soaring energy costs. They describe the situation as one of the most significant supply shocks in decades, with growing public frustration over the rising cost of living. The letter calls for a common approach that ensures those profiting from the crisis contribute to easing the burden on the general public.

The push comes amid sharp increases in energy prices. Oil prices have risen roughly 25% since the outbreak of the U.S.-Israeli war on Iran on February 28. Refined products have seen even steeper climbs, with European diesel prices surging more than 70% and gasoline prices rising around 20% over the same period.

The six ministers are advocating for an EU-wide framework to tax windfall profits, building on lessons from 2022. They specifically call for a more targeted analysis of how foreign profits of multinational oil companies could be included in such a mechanism. Additionally, they are urging the European Commission to expedite its investigation into refiners' margins, to ensure refineries are not exploiting the current price spike for excessive gains.