Six countries are interested in EU discussions on windfall profits taxation of oil companies.

A 'letter from their finance ministers on Monday revealed that six European Union countries wanted the 27-nation EU to discuss in September how to tax the windfall profits of oil companies caused by Iran's blocking of the Strait of Hormuz.

In a letter addressed to Ireland, the country that currently holds the rotating EU presidency, Germany, Spain Portugal, Italy, Poland, and Austria ask the presidency to place the topic on the agenda for the next EU Finance Ministers' Meeting in Dublin, scheduled to take place on September 18-19.

The six finance ministers, who wrote the letter seen by, said that "we are experiencing one the biggest supply shocks since decades" and that there was growing discontent around the world about the rising cost of living.

"Government actions taken to date have not been sufficient to permanently reduce or stabilize prices for citizens and businesses." "This is why we need a shared approach that will ensure that those who profit from the crisis also do their part in easing the burden of the general public," said the group.

Prices of refined products have also risen - European diesel has risen by more than 70%, while gasoline prices have risen around 20%.

The letter said: "To address the issue of high energy costs, we must discuss an EU-wide framework for taxing windfall profits. This time, with a specific analysis of how foreign profits of multi-national oil companies can be incorporated in a targeted manner."

Ministers said they wanted to know the results of a European investigation on refiners' profit margins as quickly as possible to ensure that refineries were not taking advantage the current spike in energy prices. (Reporting and editing by Louise Heavens, Jan Strupczewski)

(source: Reuters)