US Lawmakers Revive Big Oil Windfall Tax As Prices Surge

US lawmakers led by Sheldon Whitehouse and Ro Khanna have reintroduced the Big Oil Windfall Profits Tax Act to tax large oil companies amid a sharp rise in fuel prices.

Petrol prices have surged following the Iran conflict, putting pressure on American consumers, while supply disruptions and tensions in key shipping routes have driven oil markets higher.

Whitehouse criticised oil firms for benefiting from rising prices while consumers struggle at the pump. He urged the government to redirect excess profits to the public and accelerate the transition to cleaner energy.

Khanna also called the situation an economic misstep, highlighting the growing burden on working Americans.

The proposed legislation targets companies producing or importing at least 300,000 barrels per day. It seeks to impose a 50 per cent tax on the difference between current oil prices and last year’s average, when firms already reported strong profits.

The government plans to return the revenue to consumers through quarterly rebates, with estimates suggesting the measure could raise around $33 billion annually.

Advocacy groups, including the League of Conservation Voters and the Sierra Club, have backed the proposal, urging action to curb excess profits during crises.

Fuel prices have climbed sharply, with petrol nearing $3.72 per gallon and diesel rising further. Disruptions in the Strait of Hormuz have intensified global supply concerns.

The International Energy Agency plans to release reserves, but analysts warn volatility may persist.

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