Record fuel prices across EU prompt calls for bloc-wide windfall tax on firms
German minister says companies are ‘exploiting situation’ in Middle East, as sky-high prices become major domestic issue for leaders European governments have discussed imposing a bloc-wide windfall tax on energy companies, as near-record fuel and gas prices pile pressure on leaders desperate to contain mounting public discontent and the challenge of the far right. With elections due next year in…
European leaders are considering a bloc-wide windfall tax on energy firms amid record-high fuel prices that are causing widespread public discontent. Germany's finance minister, Lars Klingbeil, urged the European Commission to propose tax models by next month, as oil prices surpassed $100 a barrel and pump prices reached all-time highs.
In Germany, diesel prices surged to €2.45 per litre, while petrol hit a record €2.31 per litre. Prices in the Netherlands reached an unprecedented €2.73 per litre for petrol and €2.78 per litre for diesel. Across the EU, petrol prices are 24% higher than a year ago, while diesel costs are up 38%. The EU's economic commissioner, Valdis Dombrovskis, stated that the commission does not plan an EU-wide taxing mechanism at this stage but is open to discussions and willing for member states to implement their own taxes.
The political crisis over fuel prices is particularly acute in France and Italy, where elections are scheduled for next year. In Italy, the ruling coalition plans to scrap road tax for 14.5 million cars and motorbikes, while in France, President Emmanuel Macron called for a "full mobilization" to secure fuel supplies and curb price hikes.
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