Windfall Tax Effect on Crude Oil Prices

December 07, 2022

The idea of windfall taxes on oil companies is not new. It was first introduced in the 1970s and has been debated ever since. The idea is to tax the profits of oil companies when they are making a lot of money, which is usually when the price of oil is high.

The main argument for a windfall tax on crude oil companies is that they earn tremendous sums of money and should be taxed accordingly. The primary fight against it is that it will discourage industry investment, leading to less production and higher prices for consumers.