We see that petrol and diesel have become extremely expensive every day at the gas stations and we feel that painfully in our accounting. “The war in Ukraine” is a popular argument of the mineral oil companies – although the oil price is high, it is not so exorbitantly high as to justify such prices. It is suspected that profits are made from the war here. And not too close, as a recent study commissioned by Greenpeace suggests.
Ironically, the environmental protection organization, which might actually be cheering high fuel prices, denounces the profiteering. A study commissioned by Greenpeace quantifies for the first time the huge crisis profits the oil industry has been able to generate since the start of the Russian invasion of Ukraine: Selling diesel and petrol in Europe will provide companies with an additional income of at least 3 billion euros .
For March alone, the study estimates the additional income of the EU oil industry at an average of €107 million per day: €94 million from the sale of diesel and €13 million from the sale of petrol. “Consumers across Europe have been hit by unprecedented price hikes at the pump,” say environmentalists.
4.3 million euros per day in Austria
In Austria, the profits from the crisis amounted to about 4.3 million euros per day. The largest part of this (3.7 million euros) comes from the diesel business. In the first month of the war in Ukraine, these additional revenues on the domestic market amounted to 133.3 million euros. In Austria, the oil industry has generated the second highest additional income from sales of diesel and petrol in the EU after Germany.
Greenpeace is calling on the federal government and Chancellor Karl Nehammer to tax these immoral profits from the crisis separately to fund support measures for populations particularly affected by inflation and to reduce Austria’s dependence on oil.
About the study – Differences between crude oil and gas prices
The analysis by the Hamburg-based research and consultancy firm EnergyComment focuses on the fast-growing margins between international crude oil prices and European gas station prices excluding taxes and duties. It is striking that prices at the pump have risen much faster than the price of crude oil: between January and March the price of crude oil rose by only about 19 cents per liter. At the same time, the price increase for diesel from the refinery, around 30 cents per litre, and diesel at the gas station, around 37 cents per litre, was significantly higher.
A similar, albeit weaker, trend can be observed for petrol. These significant profit margins clearly show how the oil industry has benefited from the crisis, pushing up prices across the supply chain, while the average cost base has barely changed.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
