EU ministers urge action on oil prices

European Union finance ministers, meeting in Manchester, England, have urged oil companies to put more money into exploration for new sources of oil and into more refining capacity in order to bring down soaring oil prices that they say are adversely affecting individual households and businesses, as well as impacting economic growth.

They cited growing profits to oil companies as a result of the prices that are nearly double what they were last year at this time as proof that the companies should be able to look for more oil and build more capacity to refine that oil in order to increase supply and bring prices down.

Just as one example, French oil company Total reported €1.5 million per hour in profits in the first half of 2005. At the same time, gasoline and home heating oil have risen in price by 30 percent in some places.

BP, Shell, and Exxon were also given as examples of oil companies whose profits have risen with the price for oil and gasoline. The finance ministers also talked about compensation to poor families who will have to pay more just to keep warm in the coming winter.

The Belgian minister, for example, announced that his country will refund the 21 percent value added tax domestic consumers ordinarily pay on heating oil in order to help compensate for higher prices.

The French finance minister, who has a meeting planned for next week with representatives of oil companies, has said that he will tax the companies if they cannot come up with a plan to lower oil prices.