A group of 31 European NGOs, including Oxfam, WWF, CAN Europe and T&E, have called on the EU to tax excess oil profits to support Europeans in the crisis. In a letter, the NGOs, which represent more than 40 million citizens across more than 2,000 member organisations, call for funds to be targeted towards shielding vulnerable households and supporting the clean energy transition to avoid similar volatility in the future.
The European Union is once again confronted with a severe energy crisis, driven by the US-Israel war on Iran and escalating geopolitical tensions. The EU’s fossil fuel import bill has increased by €22 billion in just the first 44 days of the conflict, which the head of the International Energy Agency has described as the worst energy crisis in history. Oil companies are set to make a €24 billion windfall on road fuel alone in 2026, according to T&E’s oil profits tracker, much of this at the expense of EU citizens and businesses.
In 2022, the EU introduced a temporary solidarity contribution on excess profits for energy companies. An assessment by the European Commission found that the measure raised €28 billion during the fiscal years of 2022 and 2023. Last week, five countries – Austria, Germany, Italy, Portugal and Spain – called on the Commission to develop an EU-wide tax on windfall profits.
Antony Froggatt, senior director at T&E, said: “Once again, drivers’ pain is Big Oil’s gain. Instead of governments putting the burden on taxpayers, it’s time that oil companies pay up. As an immediate and first step, the EU should reintroduce its windfall tax on oil company war profits and use those funds to protect citizens.”
The group also calls on the EU to expand the scope of the mechanism to address profits from across the oil supply chain, and those generated by international fossil fuel companies – including those not headquartered in the EU but deriving significant revenues from the European market.
The letter calls for revenues to be clearly and transparently earmarked for socially and environmentally beneficial purposes, including targeted support for vulnerable households, investment in energy efficiency, and accelerated deployment of renewable energy and electric vehicles and other electrification solutions. The mechanism should be embedded within a broader strategy to reduce Europe’s dependence on fossil fuels, say the signatories, to mitigate the impact of oil price volatility in an ever more energy-insecure world.
On April 22, the EU Commission is scheduled to present emergency measures to allow governments to better support the industries hit hardest by the energy crisis. EU leaders will also discuss the bloc’s response when they meet on 22-23 April.
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For the full list of signatories, see the letter.
