War in Ukraine: EXTRA 3,000 million for oil companies – EN

New report. Oil companies: the great beneficiaries of the war

  • Greenpeace has calculated the ‘immoral profits’ of the oil companies, whose margins have risen disproportionately since the start of the war
  • In Spain alone, oil companies earn an additional 7.6 million euros a day, while the population suffers from record prices at gas stations
  • Greenpeace denounces that the aid of 20 cents applied by the Government ends up directly in the pocket of the oil companies, and demands to end these benefits and investigate possible pacts in the price of gasoline

Oil companies have entered an additional 3,300 million in Europe since the Russian invasion of Ukraine began, as evidenced by a new investigation commissioned by Greenpeace. Only in March the oil industry collected an average of 107 million euros in extra income every day94 million from the sale of diesel and 13 million in gasoline. Some benefits that Greenpeace considers immoral in a context where European citizens are suffering record prices at gas stations.

In Spainthe oil industry is recording additional revenues of 7.6 million euros per day: 7 million € for the sale of diesel and 0.6 mill. € in gasoline.

The situation is replicated in other states and regions of the European Union: by country, the largest extra profit for oil companies occurred in Germany (1,180 million euros), followed by France (412.3 million) and Italy (387, 6 mill.), with Spain in fourth position among the most profitable countries for oil companies during the war with 235.6 million.The Greenpeace analysis highlights that while crude oil prices rose 19.38 cents/liter between January and March, diesel prices at the refinery increased much more in that period (about 30-31 cents/l) reaching up to 36.5 cent/l difference in the final price at the pump. A trend similar to that observed in gasoline, although weaker.

«These differences show how the oil industry is taking advantage of the war to increase its prices throughout the supply chain, despite the fact that production costs have not changed significantly.» stated Adrián Fernández, head of mobility at Greenpeace Spain, who pointed out that «the help of 20 cents applied by the Government since last week just directly in the pocket of the oil companies, contributing not only to fuel the climate crisis, but also Putin’s war machine whose financing depends on Russian oil exports.»

In response to the Russian invasion of Ukraine, the European Commission has allowed Member States to establish temporary taxes on windfall profits of energy companies. A possibility that the oil companies are getting rid of, since the few Member States that have applied this measure (including Spain) have focused solely on the benefits of gas and electricity. European leaders must extend the scope of these measures to the fuel sector as well, in line with the Commission’s proposal to tax all windfall profits in energy.

After record fuel prices in March, countries like Germany OR Austria They have launched two investigations to detect possible price-fixing agreements or cartels between the oil companies. Greenpeace demands that the European Commission also direct its investigations towards the disproportionate increases in the price of diesel and gasoline throughout the EU to ensure that they are not due to a price fixing pact between companies.

Klara Maria Schenk, Head of Climate and Transport at Greenpeace Central and Eastern Europe, stated that “Oil companies are earning millions of euros day after day while the conflict in Ukraine continues to fuel. That is why we ask European leaders to stop this shameful exploitation of the crisis and tax the profits of the oil companies. Some taxes that should be used to help the most disadvantaged households and promote the transition of transport to provide the population with a cleaner mobility system, accessible to all people and less dependent on fossil fuels.»

In the meantime, the Commission continues to work on its REPowerEU plan to reduce Europe’s dependence on Russian fuel. In its first draft, the EU has completely ignored the transport sector, despite assuming two thirds of oil consumed in the Union. To get rid of dependence on fossil fuels, the EU must look towards the transport sector and introduce measures to accelerate its decarbonisation, starting by ending short and business flights that have an alternative by train, promoting public transport and rail, and ending the sale of diesel and gasoline vehicles before 2028.

Summary of the report in Spanish available HERE
Full report in English available HERE
Greenpeace proposals to deal with the crisis in Ukraine available HERE
In Depth War in Ukraine available HERE

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