Lisbon, July 30, 2026 (Lusa) - The cabinet approved on Thursday the introduction of a Temporary Solidarity Levy on the Oil Sector, which will apply to companies in the crude oil and refining sectors, a government source told Lusa.
The levy, which will be one-off and temporary, will apply to the portion of companies' profits that significantly exceed the average recorded in previous years, at a time when the extraction and refining of petroleum products have generated extraordinary profits due to rising fuel prices.
According to the same source, the revenue from the new levy will fund measures to mitigate the impact of rising fuel prices on households and the most vulnerable economic actors, as well as investments to reduce dependence on fossil fuels.
The finance minister and counterparts from Germany, Spain, Italy and Austria have called on Brussels to introduce a tax on energy companies' windfall profits, similar to the measures taken to tackle the 2022 energy crisis.
The request was made on 3 April in a joint letter signed by Joaquim Miranda Sarmento, the Federal Ministers of Finance of Austria (Markus Marterbauer) and Germany (Lars Klingbeil), the Minister of Economy and Finance of Italy (Giancarlo Giorgetti) and the Minister of Economy, Trade and Business of Spain (Carlos Cuerpo).
«Given the current market distortions and budgetary constraints, the European Commission should swiftly develop a contribution mechanism similar» to the temporary solidarity contribution established in 2022.
The ministers pointed out that this would enable financing temporary relief measures, particularly for consumers, and curb rising inflation while preserving public budgets.
In 2022, in the wake of the energy crisis resulting from the war in Ukraine, the European Union's energy ministers approved measures providing for a 33% tax on the excessive profits of fossil fuel companies, which would be converted into a «solidarity contribution» to be redistributed to the most vulnerable, a cap on the profits of low-cost (renewable) electricity producers, and plans to reduce electricity consumption.
The so-called ‘windfall tax' was levied on energy companies in Portugal between 2022 and 2023, generating revenue of around €8.3 million – a figure that fell short of the government's expectations.
Galp, which operates in the crude oil and refining sectors, announced on Monday a 44% increase in profit to €812 million in the first half of the year, compared with the same period last year, driven by higher oil production in Brazil and the average Brent crude price.
CT/ADB // ADB.
Lusa
