Finance ministers from Spain, Austria, Germany, Italy, and Portugal last week urged Brussels to alleviate the burden on consumers.
European Commissioner for Economy Valdis Dombrovskis confirmed to European leaders that a windfall tax on energy companies' profits is under consideration.
"In principle, nothing prevents member states from implementing such a tax, as direct collection largely falls within national jurisdiction," he stated. "We are evaluating whether a more coordinated approach can be adopted at the European level. The matter remains under assessment."
In 2022, Europe implemented a similar emergency tax to address surging fuel prices following the Russia-Ukraine conflict. This tax targeted oil and gas corporations operating and generating profits within the EU market. US oil and gas giant Exxon also faced a similar EU tax in 2022.
On 10/4, European Commission (EC) spokesperson Paula Pinho noted that "various measures" are being discussed, including those previously implemented.
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A gas station in Berlin, Germany on 3/3. Photo: Reuters
In march, Brent crude oil prices averaged 97 USD a barrel, marking a 33% increase from february. Global natural gas prices also saw significant rises. Leo Mariani, a senior analyst at Roth Capital Partners, predicted, "Oil companies' profits will certainly explode in the first quarter of this year."
In Q4/2025, oil and gas company Chevron produced 4 million barrels of oil daily at an average price of 64 USD a barrel. Reuters estimated that with a 33 USD increase, Chevron's oil sales revenue climbed by 4 billion USD in march. Similarly, Exxon, producing approximately 5 million barrels daily, is projected to have earned an additional 5,1 billion USD last month with a comparable price surge.
Oil and natural gas prices surged following US and Israel airstrikes on Iran on 28/2, which prompted Iran to threaten a blockade of the Strait of Hormuz. This critical waterway facilitates 20% of global crude oil and liquefied natural gas transport. The attacks also inflicted damage on energy infrastructure in the Gulf region. Brent crude prices climbed by over 30% in the past month, briefly approaching 120 USD a barrel, a four-year high.
This week, oil prices fell by approximately 13% after the US and Iran announced a two-week ceasefire and initiated peace talks. However, US Vice President JD Vance reported on 11/4 that negotiations with the Iranian delegation in Pakistan concluded after 21 hours without reaching an agreement.
By Ha Thu (AFP)
