BP makes biggest profit in 14 years as energy bills soar

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BP reported its biggest quarterly profit in 14 years after soaring oil and gas prices, reports News.az citing the BBC.

The energy giant saw its underlying profits hit $8.45bn (£6.9bn) between April and June, more than triple the amount it made in the same period l last year.

It comes as typical household energy bills are expected to hit over £3,600 a year this winter.

Windfall profits have prompted the government to tax businesses more to help families with rising bills.

BP’s profits were the second highest in the company’s history in the second quarter and follow the record profits of rival Shell and the owner of British Gas Centrica’s huge profits last week, as oil companies take advantage of soaring energy prices.

Dale Vince, the founder of energy supplier Ecotricity, said BP “holds a load of money from beleaguered bill payers in our country”, adding that he believes it is time to raise taxation on the profits of oil and gas companies. .

“Clearly there are windfall profits in the oil and gas sector, and clearly there is a problem in the energy market, and we should settle with each other,” he said. he told the BBC’s Today programme.

Campaign groups Greenpeace and Friends of the Earth as well as Labor and the Liberal Democrats have also called for a tougher windfall tax on oil and gas companies.

The government introduced a package of measures to help people pay their energy bills, such as a £400 rebate, and following political pressure ministers announced in May that oil and gas companies would pay an additional 25% on profits made in the UK.

The tax applies from May 26 to profits made in the UK, which for most oil and gas companies is only a small part of their operations. For BP, it represents a tenth of global oil and gas production.

BP will therefore not be required to pay tax on the majority of the profits it made between April and June.

The Treasury said it was not commenting on “individual taxpayers”, but added that it expected the windfall profits levy, called the Energy Profits Levy, to bring in around £5billion to the during his first year.

Critics of a windfall tax argue that it could hurt pension funds invested in energy companies.

However, pension funds are invested in different countries and industries, so a tax in one sector is unlikely to make a noticeable difference.

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