Shannon Van Hoesen, shannon.vanhoesen@sierraclub.org
Washington, DC – Senator Whitehouse and Representative Khanna have reintroduced the Big Oil Windfall Profits Tax Act, a bill that would provide relief to Americans struggling with price gouging by fossil fuel companies. This type of legislation has wide and bipartisan support amongst voters and Congress should work swiftly to pass it and send it to President Biden to sign.
The law would apply to the largest oil companies who have taken advantage of geopolitical instability in the wake of Russia’s invasion of Ukraine and raked in mind-boggling profits through record-breaking price increases. While prices for gasoline have come down from their peak in the summer, cost per gallon is going back up and still higher than average in previous years. Revenue raised from the tax on windfall profits of big oil companies will be issued to low- and middle- income consumers as a quarterly rebate.
Big Oil companies are set to shatter records, with annual 2022 profits expected to reach $190 billion, almost a full 50% higher than the previous record in 2011. Chevron just reported a record full-year profit of $36.5 billion, with their fourth-quarter earnings topping off at $7.9 billion, up 61% from a year earlier. Valero had its best year ever, with annual earnings up 904.86% from 2021.
Last year, President Biden signaled support for such a tax and reiterated his desire to hold oil companies accountable for exploitative practices in his State of the Union address earlier this month. Our European allies have already enacted their own windfall tax to combat war profiteering by oil companies.
In response, Director of Beyond Fossil Fuels Policy Mahyar Sorour released the following statement:
“Families have been forced to watch their energy prices rise while oil companies boast of their jaw-dropping profits, quarter after quarter. Big Oil companies are profiting off of war and geopolitical turmoil. They are taking advantage of their consumers while they pollute our environment and attempt to lock us into a future of more profits through expanded fossil fuel production. We applaud Senator Whitehouse and Representative Khanna for introducing this bill and urge Congress to swiftly enact a windfall profits tax, end the practice of price gouging by energy companies, and stop the practice of giving handouts to these multi-billion dollar companies.”
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.