Italy debates windfall tax on energy companies amid rising profits

Debate has resurfaced in Italy regarding the potential introduction of a windfall tax on energy and oil companies. This follows a surge in fuel prices, with gasoline and diesel exceeding two euros per liter in the summer of 2026.

According to estimates from Transport & Environment, eight major companies generated approximately 7.5 billion euros in windfall profits within the European single market during the first half of 2026. Of this total, 1.6 billion euros were recorded in the first quarter, while 5.9 billion euros were recorded in the second quarter, a period heavily impacted by conflict.

Italy, alongside Germany, Austria, Poland, Portugal, and Spain, has requested a common regulatory framework from Brussels. However, the European Commission has maintained that taxation remains a national competence, provided it complies with Union law. This stance has led to political pressure from the opposition, with Elly Schlein calling on Giorgia Meloni’s government to act domestically, while the executive branch, represented by Giancarlo Giorgetti, emphasizes the need for a coordinated approach to prevent competitive distortions.

Specific data from the Transport & Environment study attributes approximately 550 million euros in European windfall profits to Eni. During the same period, Eni reported an adjusted net profit of 3.635 billion euros, representing a 43 percent increase compared to 2025.