The issue focuses on how to view profits generated during a period of high oil prices. [Photo: Reve AI]

U.S. environmental group the Sierra Club urged the U.S. Congress to introduce a windfall tax, saying major oil companies should return excess profits made from oil price surges since the war.

Electrek-focused outlet CleanTechnica reported on Sept. 1 that the Sierra Club set out its position ahead of a planned meeting between U.S. President Donald Trump and chief executives of major oil companies.

The dispute centers on oil industry earnings generated by the recent rise in oil prices. The American Automobile Association said average U.S. gasoline prices exceeded $4 per gallon throughout August for the first time on record.

The Sierra Club argued that a large share of major oil companies' profits was not the result of expanded production, efficiency improvements or technological innovation, but a windfall from the post-war jump in oil prices. It said major oil companies posted record earnings while consumers paid higher gasoline prices due to the war's fallout.

Trump has also criticised major oil companies on Truth Social, saying they are keeping gasoline prices high while reaping record profits. Citing that, the Sierra Club stressed that politicians should respond to the oil industry's pricing and profit structure.

Mahyar Sorour (마히야르 소로르), deputy policy director for Beyond Fossil Fuels at the Sierra Club, criticised major oil companies for price gouging against households at the pump. He said major oil companies are turning higher gasoline prices, driven by a war households did not want, into profits worth billions of dollars.

The windfall tax bill backed by the Sierra Club was proposed by Representative Ro Khanna and Senator Sheldon Whitehouse. It would recoup part of oil companies' excess profits during a global crisis through taxes and return the money to people who bore higher energy prices.

Sorour described the oil industry's huge profits as a war-driven windfall, not innovation or U.S. energy leadership. He stressed that Congress should hold major oil companies accountable and prevent households from bearing the full burden of rising energy prices.

The call comes as average gasoline prices remain above $4 per gallon. The Sierra Club said that if a surge in oil prices creates excess corporate profits, the burden should not be shifted only to consumers.

Attention is turning to whether the meeting between Trump and major oil company CEOs will lead to discussions on pricing and clawing back excess profits. It is also being watched whether the Sierra Club's call for a windfall tax will re-emerge as a major political issue.

Keyword

#Sierra Club #Donald Trump #Truth Social #American Automobile Association #Ro Khanna
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