Diesel drivers have been a major source of revenue for oil companies since the Iran war
Major oil companies have reported record profits driven largely by high margins on refined products like diesel. Research shows that pump prices have risen significantly faster than raw crude costs, leading to calls for increased taxation on these excess earnings.
Oil companies have seen significant profit increases recently, with major players like BP and Shell reporting doubled earnings compared to the previous year. Research indicates that refineries are driving these gains through higher margins on refined products, particularly diesel. Greenpeace reports that pump prices for consumers have outpaced the rising cost of raw crude oil since March. In the European Union, diesel prices increased significantly more than crude costs, with the Netherlands recording an extra profit of 24.4 cents per liter on diesel alone. Greenpeace estimates that of the 36 billion euros in excess profits generated, 28.2 billion came from diesel sales.
Energy experts attribute part of this price volatility to the closure of various European refineries over the last two decades, which created supply constraints. The situation has been further exacerbated by the ongoing conflict involving Iran, which has led to the closure of the Strait of Hormuz and hindered global energy shipments. In response to these record earnings, Greenpeace is advocating for higher taxes on these surplus profits to help alleviate financial pressure on energy consumers.
Based on reporting by nu. Translated and condensed by LocalHeadlines.
