T&E calls for a temporary tax on oil companies’ super-profits
Oil majors are set to make a €24 billion[1] windfall from European drivers off the back of the latest conflict in the Middle East, a new T&E tracker shows[2]. Oil companies have already made €1.3 billion in excess profits, the analysis shows. T&E calls on the EU to implement a tax on excess profits and use the funds to support Europeans to become less vulnerable to future oil shocks.
Daniel Quiggin, senior policy advisor at T&E, said: “Once again drivers’ pain is oil companies’ gain. Oil companies have every incentive to keep Europe hooked on fossil fuels, as they're the ones benefiting from price spikes. The EU should reinstate its tax on excess profit and invest the proceeds in the electrification and renewables that will finally break that cycle."
Following the US-Israeli attack on Iran on 28 February, oil prices have risen rapidly. By 23 March, average EU pump prices had reached €2.06 per litre for diesel and €1.89 per litre for petrol - an increase of €0.49 and €0.27, respectively. Filling a 55-litre diesel tank now costs almost €27 more than it did before the conflict began, and €15 more for a petrol car. (....)