Five EU nations demand windfall tax on energy companies as Iran war drives prices up

The ministers argue for reviving similar measures now. Their letter, addressed to EU Climate Commissioner Wopke Hoekstra, points to the precedent set during the 2022 crisis when the bloc successfully implemented emergency taxation on energy windfall profits.

Given the current market distortions and fiscal constraints, the European Commission should swiftly develop a similar EU-wide contribution instrument grounded on a solid legal basis

Joint ministerial letter — Straits Times

The letter provides no specifics about tax rates or which companies would be targeted. However, the ministers emphasize the measure would signal European unity and shared responsibility during the crisis.

It would also send a clear message that those who profit from the consequences of the war must do their part to ease the burden on the general public

Joint ministerial letter — RFI English

Europe's heavy dependence on imported energy leaves it particularly vulnerable to Middle Eastern supply disruptions. The current crisis has already pushed eurozone inflation to 2.5 percent in March, up from 1.9 percent in February, driven largely by higher oil prices.

EU Energy Commissioner Dan Jorgensen warned this week that fuel prices are unlikely to return to normal levels in the foreseeable future due to the ongoing disruption. Brussels has expressed particular concern about short-term supplies of refined petroleum products including jet fuel and diesel.

The commission is already considering reviving other 2022 energy crisis measures, including proposals to reduce grid tariffs and electricity taxes. Whether the windfall tax proposal gains broader support among all 27 EU member states remains unclear.