Oil, gas prices surge triggers $111B in global losses
An analysis by environmental group 350.org estimates that rising oil and gas prices have cost consumers and businesses worldwide up to $111 billion during the first month of the war involving Iran.
According to the group, major oil companies such as Chevron, Shell and Exxon Mobil are positioned to generate billions of dollars in windfall profits as a result of the crisis, News.Az reports, citing Al Jazeera.
It has urged governments to introduce taxes on these profits and use the revenue to help offset the burden of rising energy costs.
350.org noted that the calculated figure does not yet account for broader ripple effects, including increases in fertiliser and food prices. As a result, the overall economic impact is likely significantly higher than the losses attributed solely to oil and gas price increases.
In Asia, the report highlighted that Philippine lawmakers have proposed a windfall tax aimed at limiting excessive profits by oil companies, while India has reinstated a similar tax on oil exports. Meanwhile, Indonesia’s president has called for the development of 100 gigawatts of solar power capacity to strengthen energy independence.
The group added that increased investment in renewable energy remains the most effective way to stabilise prices, enhance energy security and protect economies from future crises.
News.Az
By Nijat Babayev
