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[BUSINESS] · Austria, Germany, Spain, Ireland, Italy · 61 sources

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EU Member States Seek Extraordinary Profit Tax on Oil Companies

Six European Union member states—Germany, Italy, Austria, Poland, Portugal, and Spain—have formally requested that the European Commission consider implementing a common mechanism to tax the extraordinary profits of oil companies. In a joint letter to the Irish presidency of the Council, the finance ministers argued that oil companies are seeing massive profitability due to the conflict in the Middle East, with refining margins rising faster than crude oil prices.

The ministers aim to have this issue added to the agenda for the upcoming EU finance ministers' meeting in Dublin on September 18-19. They seek a targeted framework to ensure that companies profiting from energy shocks contribute to alleviating the rising cost of living for consumers.

In response, the European Commission stated that the taxation of extraordinary profits remains the responsibility of individual Member States, provided such measures comply with European law. While the Commission will respect national decisions and offer assistance, it has not proposed a centralized EU-wide tax.

Simultaneously, European natural gas prices have surged to their highest levels in over three years, reaching approximately 68.9 euros per MWh. Analysts from Goldman Sachs warn that prices may need to exceed 100 euros per MWh by December 2026 to incentivize sufficient gas storage filling, especially as Europe faces intense competition from Asian markets for limited liquefied natural gas (LNG) supplies.

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Council of the European Union · Dublin · European Commission · European Union · Germany · Goldman Sachs · Ireland · Italy · Joaquim Miranda Sarmento · Lars Klingbeil · Matteo Salvini · Spain

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