Will EU bring in a windfall tax on oil companies? in Oil & Companies News 14/05/2026 The dramatic rise in energy prices in the wake of the Iran war has led to calls for the European Union to introduce a so-called windfall tax on oil and gas companies, to use some of their profits to help governments fund relief schemes. Earlier this month, the finance and economy ministers of Austria, Germany, Italy, Portugal and Spain wrote a joint letter to EU Climate, Net Zero and Clean Growth Commissioner Wopke Hoekstra, asking for such a levy. They wrote that it would “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.” Oil companies have made massive profits as a result of the spike in prices caused by the war in Iran and the closure of the Strait of Hormuz. An analysis by the UK’s Guardian newspaper, using data from Rystad Energy, found that leading oil and gas companies will make an extra $234 billion (€200 billion) by the end of the year, if the oil price continues to average around $100. It found that companies such as Saudi Aramco, Gazprom and ExxonMobil are among the biggest beneficiaries. The Financial Times reported that the French energy companies TotalEnergies made more than $1 billion after making a speculative purchase of around 70 cargoes of crude produced in the UAE and Oman available to load in May. This week, BP reported an “exceptional” performance in the first three months of 2026, with profits more than doubling on the same period last year to hit $3.2 billion. ‘Fragile legal ground’ The governments calling for the tax said it would provide relief for consumers “without placing ⁠additional burdens on public budgets.” Their letter highlighted 2022 as a precedent, when Brussels put a temporary “solidarity contribution” on energy companies, imposing a minimum 33% tax on all oil and gas company profits that exceeded the average of the previous four years by more than 20%.