EU governments must urgently tax fossil fuel profits to alleviate energy bills and to speed up investments in cheap, safe and home-grown renewables
Brussels/Berlin – Oil companies in the EU are making €81.4 million in extra profits every day from skyrocketing fuel prices since the start of the war in Iran, or around €2.5 billion in additional profits for March alone.[1] This is the finding of a new study, Excess Oil Profits in Times of War, by energy expert Steffen Bukold, commissioned by Greenpeace Germany.
The study, which also breaks down profit data in all EU countries for petrol and diesel, shows that prices at the pump have risen far more than the underlying increase in crude oil prices. This is indicative of enormous profit hikes across the whole fossil fuel industry, while millions of people struggle to pay their energy bills. Greenpeace calls on EU governments to introduce permanent top-up taxes [2] on the profits of oil and gas corporations, with the earnings used to cut bills, fast track Europe’s energy independence with renewables and energy savings, and support communities impacted by the climate crisis in Europe and the rest of the world.
Greenpeace EU political campaigner Ariadna Rodrigo said: “While people are dying in the Middle East and millions in Europe struggle with skyrocketing fuel prices, governments are letting oil companies line their pockets. They need to urgently introduce higher taxes on all fossil fuel profits and use the money to cut people’s energy bills, deploy cheap, safe and home-grown renewables, and support communities impacted by climate breakdown. At the current rate of extra profits, governments could provide around 60 million free monthly public transport passes every month, or give all 40 million people struggling to pay energy bills in the EU €60 every month to bring down household expenses.”[3]
The highest total windfall profits in the EU were in Germany, France, Spain and Italy. As the largest fuel market in the EU, Germany tops the list and shows an above-average expansion of profit margins in March for both diesel and petrol.
The highest profit margin increase per litre of diesel was in the Netherlands, Sweden, Denmark and Austria, and for petrol it was in Germany, Austria, Spain and Denmark. The research concluded that these extra profit margins were higher in countries with a high purchasing power. On the other hand, profit margins even shrunk in a few smaller countries with lower purchasing power, especially in Central and Eastern European countries, such as Slovakia and Slovenia.
To unlock new revenues to fund a global green transition and to speed up energy independence, Greenpeace supports taxation of polluters and the super-rich. This would secure funding to phase out fossil fuels and to cover climate losses and damages for communities most affected by the climate crisis.[4] These measures would include global taxes on extreme wealth, a high top-up tax on the profits of fossil fuel companies, as well as a levy on luxury aviation, including business and first class flights.
ENDS
Notes:
[1] In the EU, oil companies are earning an additional €75.3 million from diesel and €6.1 million from petrol – every single day.
[2] A top-up profit tax is a permanent annual tax on all fossil fuel profits, not just on windfall revenues/excess profits. The tax would be additional to existing corporate taxes and therefore lead to a higher tax rate for fossil fuel companies compared to other, less polluting sectors.
[3] Monthly local or regional public transport passes in the EU are estimated to cost around €40, with lower prices in eastern and southern countries, and higher prices in western and northern countries.
[4] When it comes to fossil fuel company taxation to respond to energy price rises and profit spikes caused by the Iran war, Greenpeace urges governments across the EU to deliver the following:
- At the EU level: Support the establishment of a new and permanent solidarity mechanism, mandating a tax on profits of minimum 33%, progressively increasing over time, in line with the speed of fossil fuel phaseout necessary for the EU. At the national level: Introduce progressive domestic polluter tax options, ensuring the wealthy owners, investors and shareholders of the fossil fuel industry shoulder a greater tax burden, raising more public funds for communities affected by climate breakdown at home and abroad.
- At the global level: Play a proactive role in pushing for a global polluter profit tax on international oil and gas companies through the UN Tax Convention, ensuring these revenues are channelled directly into UN multilateral funds for climate loss, damage, adaptation and mitigation.
Contacts:
Ariadna Rodrigo, Greenpeace EU political campaigner: +32 (0)479 99 69 22, [email protected]
Greenpeace EU press desk: +32 (0)2 274 1911, [email protected]
For breaking news and comment on EU affairs: Bluesky
Greenpeace is an independent global campaigning network that acts to change attitudes and behaviour, to protect and conserve the environment and to promote peace. We do not accept donations from governments, the EU, businesses or political parties. Greenpeace has over three million supporters, and 26 independent national and regional organisations with offices in more than 55 countries.
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