New analysis has raised growing concerns about energy market volatility and its impact on the global economy. 350.org is urging governments to go further and tackle the root cause of rising costs: fossil fuel profiteering.
The organisation’s intervention follows a communiqué written by G7 Energy and Finance Ministers and Central Bank Governors. The G7 group recently held a meeting online, which reaffirmed the need to closely monitor the impact of surging energy prices on households and markets. But without action being taken on extraordinary corporate profits, these efforts risk falling short.
Profiteering impacts the cost of living
Recent market activity highlights the scale of the issue. Energy giant Total is reported [paywall] to have monopolized crude shipments from the UAE and Oman last month, securing around 70 shipments. By stockpiling oil during escalating tensions in the Gulf, the company is estimated to have made $1 billion in profit in just one month, as Murban crude prices surged from $70 to $170 per barrel.
The analysis by 350.org shows that $100 billion has been siphoned from ordinary people to oil and gas companies due to soaring energy prices. With less oil available on the market, companies like TotalEnergies are able to exert outsized control over supply, selling to the highest bidder, likely overseas markets, rather than helping ease pressure on energy bills for households already struggling with the cost of living.
Fanny Petitbon, France Team Lead, said:
It is obscene that companies like TotalEnergies are making enormous profits from war, while ordinary people’s lives are being shattered and the world faces a spiraling economic crisis. At a time of such profound human suffering, no company should be allowed to exploit chaos and conflict for financial gain. The G7’s deafening silence on these windfall profits speaks volumes, signaling a failure to hold corporate greed accountable while the rest of the world pays the price.
Coordinated international action is needed
Advocates are calling for coordinated international action to introduce windfall taxes on fossil fuel companies benefiting from crisis-driven price spikes. Revenues raised could be used to support vulnerable households, accelerate the transition to renewable energy, and fund recovery efforts in regions affected by conflict.
Petitbon added:
The principle is clear: extraordinary profits made in times of crisis should be redirected for the public good, not concentrated in the hands of a few.
This intervention follows the submission of a letter by 40 UK civil society organisations, who are similarly calling on the government to introduce new domestic levies across various war-profiteering industries.
By The Canary
From Canary via This RSS Feed.