Oil companies have achieved significant profit increases in wealthier European countries following the outbreak of conflict in the Middle East, according to a study commissioned by Greenpeace. In Europe, margins on diesel have risen substantially, most sharply in the Netherlands, followed by Sweden, Denmark, Austria, and Germany, Greenpeace announced on Wednesday. "In smaller countries with less purchasing power such as Slovakia, Hungary, or Ireland, margins have shrunk considerably during the same period since the war began," the organization stated.
Energy expert Steffen Bukold reportedly examined the development of fuel and oil prices on behalf of the environmental activists since the beginning of Israeli and US attacks on Iran. The sharp increase in fuel prices in Europe cannot be explained solely by higher crude oil prices, according to the findings. The oil industry has additionally pocketed substantial excess profits.
Bukold stated that he calculated these excess profits across the 27 EU member states during the first three weeks of the conflict: 81.4 million euros per day. "The majority of these additional profits came from diesel fuel." In the Netherlands, companies expanded their profit margin on diesel by 25.6 cents per liter, and in Germany by 22.5 cents.
For gasoline, margin increases were significantly lower when they occurred at all. In the Netherlands, only 0.5 cents per liter were added, while Germany saw the highest increase at 6.2 cents. In most EU countries, however, margins fell, in some cases sharply by more than ten cents per liter.
Bukold acknowledged that the calculations "merely provide a rough overview." The observation period was short and he had to work with simplified assumptions. "Nevertheless, the results provide an initial impression of the extent of the profit increase and the geographical distribution of profits in the EU."
The mineral oil industry points to the sharply increased diesel prices by noting that Gulf states typically export large quantities of diesel themselves. Due to the blockade of the Strait of Hormuz, the amount of this particular petroleum product available on the world market has therefore become more constrained. Gasoline, on the other hand, comes in larger proportions from refineries in Europe.
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