Finance ministers from six EU countries have renewed calls for an EU-wide excess profit tax on oil companies amid high fuel prices, German broadcaster NTV reported.

Finance ministers from Germany, Portugal, Spain, Austria, Italy and Poland called for a common approach to taxing oil companies’ increased profits amid the sharp rise in energy prices.

“We are experiencing one of the biggest supply shocks in decades, and around the world, discontent is growing over the rising cost of living,” the ministers said in a letter addressed to Ireland’s finance minister, whose country currently holds the rotating EU Council presidency.

The letter said measures taken by governments so far had not been sufficient to permanently lower or stabilize energy prices for households and businesses.

“Therefore, we need a common approach that ensures those who profit from the crisis contribute their share to reducing the burden on the general population,” they said.

The ministers called for “an EU-wide framework to tax excess profits,” saying the experience of a similar measure introduced in 2022 should be taken into account.

They said lessons from the earlier measure could help determine how profits earned abroad by multinational oil companies can be more effectively included in an excess profit tax.

The ministers also called for the results of a European study into refinery margins to be released as soon as possible, saying they could provide a basis for measures to ensure refineries do not exploit the current energy situation.

The initiative was reportedly launched by German Finance Minister Lars Klingbeil, with the six ministers ideally seeking to put the issue on the agenda of an EU meeting of economic and finance ministers in Dublin scheduled for Sept. 18-19.

The renewed push comes as high fuel prices have increased pressure on European governments to intervene to ease the impact on households and businesses.

An excess profit tax was temporarily introduced in 2022 as an emergency response to soaring energy prices following Russia’s war in Ukraine, with energy companies taxed on exceptional profits.

Several major oil companies reported their quarterly financial results in July.

According to Oxfam, the combined profits of BP, Chevron, Eni, ExxonMobil, Shell and TotalEnergies reached nearly €40 billion ($46.6 billion) between April and June.

Oxfam estimates that the six companies could post combined profits of €147 billion ($171.2 billion) for the full year and has called for a permanent excess profit tax of at least 50% on profits exceeding a 10% return on investment.

Portugal presented a draft excess profit tax at the end of July, with the government saying revenues would support families and economic sectors affected by rising fuel prices. (Anadolu Agency)

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