Greenpeace: Oil companies are said to have made almost 860 million euros in excess profits from heating oil since the start of the Iran war

Instead of around 90 euros, as was the case before the outbreak of the Iran war, consumers currently often have to shell out around 170 euros for 100 liters of heating oil.

The escalation in the Middle East, the attacks on ships or the high demand worldwide are responsible for the price increase.

There are many reasons why the oil burned in millions of German households is so expensive.

But according to a Greenpeace evaluation, the oil companies are also benefiting from the situation.

Since the outbreak of war in February, the mineral oil companies have recorded excess profits totaling 858 million euros in the German heating oil market.

According to calculations by Hamburg oil market expert Steffen Bukold, the market price rose significantly faster than the price of crude oil.

Excess profits tax required

The analysis shows that profits rose sharply between March and July.

According to the analysis, companies earned an average of 13 cents more per liter of heating oil compared to the profit level before the start of the war.

From August onwards, the margins rose again sharply - and by the beginning of October excess profits of an average of 29.9 cents per liter had been achieved.

Because of the recent price increases, many consumers had postponed purchasing heating oil.

Now, before winter begins, their tank level is often low and they need to buy.

This means you are at the mercy of the current high prices.

In view of Bukold's calculations, Greenpeace energy expert Mira Jäger calls for a tax on corporations' excess profits.

These should be “skimmed off and the money put into a consistent and socially just heating transition.”

With such a tax, the state can partially recoup the corporations' abundant profits.

However, an excess profits tax does not directly reduce prices for consumers.

Proponents are hoping for an indirect effect - that the incentive for fuel companies to set prices too high will decrease.

During the pandemic, oil, gas, coal and refinery companies had already had to pay an additional 33 percent tax on extraordinary profits at times.

However, the step is controversial among economists: there are sometimes warnings against a distinction between “good” and “bad” profits and a government determination of when profits are too high.

But there are also those who see the excess profits tax as an effective means of taxing away the profits generated by external shocks.

Thanks to the excess profits tax during the pandemic, the federal government was able to plan several billion euros additionally for the German state coffers.

However, the structure of the tax is still legally controversial because it deeply affects the freedom of companies.

However, politically speaking, the chances that Germany will receive an excess profits tax, which is also demanded by the SPD, are currently rather poor.