A series of statements about unimaginable profits by the oil giants have sparked a backlash as consumers around the world struggle to cope with the energy crisis and its aftermath. First of all, this brings back the thorny issue of taxing the excess profits of these companies.

Last in line is BP, which on Tuesday announced a significant increase in profits for the second quarter of the year. It was the biggest profit the British giant has recorded in 14 years as it reached $8.5 billion, more than three times the corresponding period last year. It was the second most profitable quarter in BP’s history. It was preceded by announcements by US giants ExxonMobil and Chevron, with the former reaching $17.9 billion in profits, topping the previous record by $2 billion, while the latter also set a new record at $11.6 billion. Major oil company Shell has announced that it has recorded a new record profit of $11.5 billion.

Soaring profits amid rising inflation making life difficult for people around the world have led to repeated calls for governments to raise taxes on oil companies. In May, the UK announced a 25% tax on the “excessive profits” of oil and gas companies. Italy soon introduced a similar bill. In the US, President Joe Biden is under increasing pressure from members of his party to tax windfall profits, though there is no doubt that any attempt to do so will run into many obstacles. In Germany, Finance Minister Christian Lindner has steadfastly resisted calls for a similar tax, despite the support of his coalition partners. Lindner believes that a tax on the profits of oil companies could accelerate fuel price inflation. His opinion is also supported by a committee of independent economists who provide advisory services to the German Ministry of Finance. They warned that politicians “should be very careful to protect and use taxes that are popular but economically dangerous in the long run.” Oil companies are certainly opposed to taxes on their windfall profits and to increase their investment in cleaner forms of energy in order to turn the industry towards a zero carbon footprint. For example, BP accompanied its earnings announcement with promises to invest in wind power and batteries for electric vehicles. Shell CEO Ben van Beurden advocated investing in green energy as an alternative to taxation and argued “so that society no longer suffers from hydrocarbon price changes”.