Tax Oil Companies’ Windfall Profits, Says European Civil Society

A coalition of 31 European non-governmental organisations, including prominent groups such as Oxfam, WWF, CAN Europe, and Transport & Environment (T&E), has urged the European Union to impose a tax on the excess profits of oil companies. The call comes amid a worsening energy crisis exacerbated by geopolitical tensions linked to the US-Israel conflict with Iran, which has driven up the EU’s fossil fuel import costs by €22 billion in just over a month. The NGOs argue that oil companies are poised to reap windfall profits of around €24 billion from road fuel sales alone in 2026, profits that come at the expense of European citizens and businesses already struggling with soaring energy prices. The group’s letter to European Commission President Ursula von der Leyen highlights the need for a renewed and expanded windfall tax mechanism, similar to the temporary solidarity contribution introduced in 2022, which raised €28 billion over two years. They propose that such a tax should not only target oil companies headquartered within the EU but also international fossil fuel firms generating significant revenues from the European market. The funds collected should be transparently allocated to protect vulnerable households, support industry sectors most affected by the crisis, and accelerate the transition to clean energy technologies, including renewables and electrification solutions. Antony Froggatt, senior director at T&E, emphasised the unfairness of the current situation, stating that while consumers bear the brunt of high fuel prices, oil companies continue to profit excessively. He called for governments to shift the financial burden away from taxpayers and onto oil companies, urging the EU to reintroduce the windfall tax as an immediate measure. The NGOs also stress that this fiscal approach must be part of a broader strategy to reduce Europe’s dependence on fossil fuels, thereby mitigating future price volatility and enhancing energy security. The EU Commission is expected to unveil emergency measures on 22 April aimed at helping governments support industries hardest hit by the ongoing energy crisis. These proposals will be discussed by EU leaders at their summit on 22-23 April, where the bloc’s collective response to the energy turmoil will be shaped. The NGOs’ coordinated appeal reflects growing pressure on policymakers to ensure that the energy transition is socially equitable and that the costs of the crisis are not disproportionately borne by ordinary citizens.