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EU considers levies on fossil fuel companies to protect consumers from the energy crisis

A draught European Union plan revealed on Monday, as the price of the West’s “energy war” with Russia took a mounting toll, that fossil fuel companies may have to share their extra profits to help European consumers and industry cope with soaring energy bills.


As a result of Moscow cutting gas supplies in response to Western sanctions over its actions in Ukraine, energy prices and inflation have skyrocketed. France told consumers they would have to share some of the pain, and Britain is among the nations that face the threat of recession.


According to the draught plan from the European Commission, which is anticipated to be revealed this week, the 27 EU nations would implement a ‘solidarity payment’ for the fossil fuel industry.


According to the draught, which is subject to revision and will then need to be approved by EU governments, oil, gas, coal, and refining corporations would be required to make a financial contribution based on taxable excess profits made in the 2022 fiscal year.


The draught EU plan, seen by Reuters, stated that ‘such gains do not correspond to any recurring profit that these firms would or could have expected to obtain in normal circumstances.’


Both BP and Shell were silent at the time. An inquiry for comment was not immediately answered by TotalEnergies.


The measures are also anticipated to include a lifeboat for electricity companies experiencing a shortage of cash. Diplomats indicated that countries are divided over the specifics and whether to set a cap on the price of petrol they pay. Russia has stated that if a cap on natural gas was implemented, it would stop all shipments.


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