Six EU countries push for bloc-wide windfall tax on oil company profits

Joint letter to the EU presidency

Finance ministers from six European Union member states have requested the introduction of a bloc-wide windfall tax on the extraordinary profits of oil companies. The joint initiative was submitted by Germany, Italy, Austria, Poland, and Portugal, alongside Spain's economy minister, in a letter addressed to the Finance Minister of Ireland, who currently holds the rotating presidency of the Council of the European Union. Spearheaded by German Finance Minister Lars Klingbeil, the coalition is seeking to place the taxation framework directly onto the agenda of the upcoming Economic and Financial Affairs Council meeting. The ministerial session is scheduled to convene in Dublin on 18 and 19 September 2026.

Rising energy costs and supply disruptions

The request follows sharp increases in consumer fuel prices and rising earnings across multinational energy companies linked to the conflict in Iran. In their joint missive, the ministers stated that national-level intervention measures adopted across individual member states have proved insufficient to permanently stabilize or reduce prices for households and businesses. They argued that extraordinary market conditions require a coordinated European response to redistribute the financial burden generated by the geopolitical crisis.

We are experiencing one of the greatest supply shocks of recent decades, and discontent over the rising cost of living is growing worldwide.

The signatories maintained that companies benefiting directly from elevated fuel prices must contribute to easing living costs for the broader public. In Rome, the deputy group leader of Fratelli d'Italia in the Chamber of Deputies, Augusta Montaruli, publicly supported the petition, pointing to ongoing domestic discussions regarding fuel prices and potential extensions of excise duty reductions.

The request of European countries, including Italy, for community taxation on extra profits to allow us to stem petrol prices is good. The Meloni government is at the forefront to support Italians also on this front and does so by any means necessary. Now Europe must listen to us.

Refinery margins and European investigations

In addition to proposing a windfall levy, the six finance ministers stressed the necessity of utilizing past national experiences to design targeted tax mechanisms for multinational oil groups. The letter urged European officials to promptly release the findings of an EU-wide investigation into refinery profit margins. The ministers asserted that obtaining these investigative results as quickly as possible is vital to ensure that refining corporations do not exploit the current supply situation for excess financial gain.

Previous European proposals

The petition represents a renewed attempt by several member states to establish common energy taxation rules across the European Union. In early April 2026, Italian Economy Minister Giancarlo Giorgetti joined counterparts from Germany, Spain, Portugal, and Austria in addressing a similar joint letter to the European Commissioner for Climate Action and Taxation, Wopke Hoekstra. That Easter-period request for a coordinated fuel pricing response was subsequently rejected by the European Commission without follow-up action. With Poland now joining the group of signatories and fuel costs remaining elevated, the six nations are seeking a formal debate during the Dublin Ecofin meetings in September.