EU discusses windfall tax on energy companies — The Guardian
The EU is discussing the possibility of introducing an EU-wide windfall tax on energy companies amid record or near-record fuel and gas prices. At a meeting of EU finance ministers in Dublin, German Finance Minister Lars Klingbeil called on the European Commission to present options by next month for taxing the excess profits of oil companies, The Guardian World reports.
Klingbeil said that a number of member states had long been asking for relevant models to be proposed. In his view, oil companies are taking advantage of the situation in the Middle East, inflating prices and substantially increasing profits.
Record fuel prices
Oil futures have again exceeded $100 per barrel — around 50% more than before the war with Iran. The escalation of attacks in the Middle East threatens new supply routes, while derivatives markets indicate that traders do not expect prices to fall quickly.
In Germany, the average price of diesel reached a record €2.45 per litre on Wednesday, while petrol cost €2.31 per litre, according to the ADAC automobile association. In the Netherlands, petrol cost an average of €2.73 per litre and diesel €2.78. Even higher petrol prices were recorded in Denmark, while diesel prices were higher in Finland.
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On average across the EU, petrol has risen by 24% over the year, diesel by 38%, while jet fuel costs more than twice as much. The benchmark gas price stands at €81 per megawatt-hour, 150% higher than a year ago. Analysts suggest it could rise to €100 per megawatt-hour.
Government response
European Commissioner for Economy Valdis Dombrovskis said that the European Commission currently has no plans to create a taxation mechanism at EU level, but is ready to discuss the issue. He also stressed that member states can introduce such taxes independently.
High fuel prices have already become an important domestic political issue in France and Italy, where elections are scheduled for next year. Italy's ruling coalition led by Giorgia Meloni said it intends to abolish the vehicle tax for 14.5 million cars and motorcycles from next year. The cost of this decision is estimated at more than €2 billion, separate from the diesel excise duty reduction that has already cost €2.8 billion.
In France, fishermen blocked access to two ports and a fuel storage facility in the south of the country over the rise in diesel prices to €2.37 per litre. After negotiations, they agreed to end the blockades in exchange for a promise of interest-free loans for those facing liquidity problems and assistance related to changes in fuel prices.
