Eight oil companies made approximately €7.5 billion in excess profits in the European Union during the first half of 2026, according to a new analysis by Transport & Environment (T&E). The results came as oil prices experienced a renewed rise, while European countries were dealing with widespread wildfires, prompting the organization to call on the European Union to impose a permanent tax on windfall profits and use the proceeds to reduce drivers’ dependence on volatile fossil fuels.
T&E said that six companies—BP, Shell, Eni, Orlen, Repsol and OMV—doubled their profits in the European Union during the second quarter of 2026 compared with the same quarter of the previous year, benefiting from volatility linked to developments in the Middle East. TotalEnergies and Moeve also recorded profits that the organization described as strong.
Where were the profits concentrated?
The excess profits attributed to the European Union were highest in Poland, followed by Spain, Germany and France. Globally, the eight companies made approximately €17.9 billion in excess profits during the first and second quarters of 2026, while the profits attributed to the European Union represented approximately 42% of the total.
This does not mean that the companies recorded all of their profits in the European countries mentioned. Some major companies, particularly BP and Shell, generate most of their revenue outside the European Union. Companies can also shift profits between jurisdictions. Therefore, T&E’s analysis relied on companies’ country-level revenue reports to allocate profits among the European Union’s 27 member states, rather than relying on where the profits were recorded for accounting purposes.
Why does this matter?
T&E believes that excess profits resulting from revenue generated within the European Union can be targeted with a permanent tax if the mechanism is designed appropriately. The organization says directing the revenue toward support for electric cars could reduce consumers’ exposure to oil-price shocks, instead of merely addressing each fuel crisis temporarily.
The spread of electric cars illustrates how this exposure differs between countries. Battery-electric cars account for approximately 19% in Denmark, compared with less than 1% in Poland. Previous research by T&E also indicates that the conflict with Iran could affect petrol-car drivers five times more than electric-car users.
Limits of the figures and the organization’s position
T&E defines “excess profit” here in a specific way: the year-on-year change in adjusted net profit after tax between the war quarter in 2026 and the corresponding quarter of 2025. Choosing the same quarter is intended to remove the effect of seasonal demand. Revenue allocation was based on companies’ disclosures for 2024 and 2025 and then applied to 2026 profits.
The organization explains that the conflict’s effect on the geographic distribution of revenue cannot be tested before 2026 reports are published in 2027, and that the direction of any potential bias in the estimates remains unclear. Anthony Froggatt, senior director at T&E, said that the European Union should tax exceptional oil profits and direct the money toward making electric driving affordable for everyone. A YouGov poll conducted on behalf of T&E and other non-governmental organizations showed that a large majority of Europeans support imposing this tax.