The president of Saudi Arabia’s state-owned oil company Aramco stated on Tuesday that Europe’s plans to tax and cap consumer energy bills are neither long-term or effective ways to address the world’s energy issue, which is mostly the result of underinvestment in hydrocarbons.
Amin Nasser, chief executive, said at a seminar in Switzerland: ‘Freezing or capping energy bills might benefit customers in the short term, but it does not address the root causes and is not the long-term solution.’
And it is obvious that taxing businesses when you want them to expand production is ineffective.
In order to address an energy crisis that is pushing up inflation, forcing companies to halt output, and raising prices ahead of winter, governments around Europe have invested hundreds of billions of euros in tax cuts, handouts, and subsidies.
Plans from the EU revealed last week would skim off excessive profits from energy corporations and redistribute them to lessen the burden on customers.