Prices must be curbed!

Thursday, 9 April 2026RSS
Prices must be curbed!

The taxation of windfall profits for oil companies, requested by the governments of Portugal, Spain, Italy, Germany, and Austria from the European Commission, is presented as a response to the cost-of-living crisis. While the measure is understandable, it is insufficient and risks serving as a political alibi to avoid the real debate: price controls. Taxing profits does not lower fuel or grocery costs for struggling families and businesses. There is a clear contradiction: if governments acknowledge 'excessive profits,' they are admitting that prices are excessive, yet they refuse to discuss direct price controls. This issue, particularly regarding food and fuel, must be addressed to stop speculative margins. Beyond immediate relief, the crisis highlights Europe's structural dependence on fossil fuels and the need for a serious energy transition toward renewables and a more resilient, local economy.

Context & Explainers

Inflation measures how much general prices rise over time, usually reported year‑on‑year to compare a month with the same month a year earlier. Portugal’s National Institute of Statistics (INE) estimated January inflation at 1.9% year‑on‑year, down 0.3 percentage points from December, which affects rents, wages and everyday purchasing power for residents.

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