Both Shell and BP have recently recorded mind-blowing second quarter profits while the UK tackles a fuel and energy crisis.
Energy giant BP confirmed a whopping £6.9billion profit in the three months leading to June, over triple the amount made this time last year.
The news breaks as drivers in the UK face stupendously high prices at petrol stations, with fuel prices decreasing slightly since July.
Residents across the country are also expecting yet another gas and electricity price hike this October.
Shell too posted record-smashing profits for the same quarter, making even more than BP. The oil company reported a profit of £9.43billion.
We take a look to see how energy companies are making so much money during a fuel crisis and what the government have said on the issue.
How are energy companies making so much money?
The dramatic rise in profits has been fuelled by steeper prices for oil and gas, which have risen due to the war in Ukraine.
The possibility of gas supply problems have forced wholesale prices to soar.
Retailers have passed those costs onto customers - pushing up household energy bills.
Increased oil prices have also directly led to the surging cost of petrol and diesel at the pumps, although prices have started to fall, slightly.
How is government tackling energy company profits?
In May, the UK government announced that oil and gas firms would face an extra 25% in tax on profits in order to help households during the cost of living crisis.
However, the legislation was not put through in time for it to be put into practice this quarter.
All extra profits made by energy and oil companies from April to June will not be taxed the additional 25%.
Labour shadow chancellor Rachel Reeves has said: “People are worried sick about energy prices rising again in the autumn, but yet again we see eye-watering profits for oil and gas producers.”
As of the time of writing, the UK government is yet to comment on the reported profits made by BP, released this morning (August 2).
What have energy companies said about their massive profits?
BP said its huge profits were caused by higher refining margins and “continuing exceptional oil trading performance”.
Meanwhile, Shell released a statement to similar effect, stating the reason behind its profits was “higher realised prices, higher refining margins and higher gas and power trading”.
