Calls are mounting for a windfall tax on fossil fuel firms to help households through the energy crisis, after they reported record profits this month.
Calls are growing for a windfall tax on energy giants, with Labour and Liberal Democrat MPs arguing that while households are being hit with sky-high energy bills, the companies which extract that gas are reporting massive profits, PA reports.
It comes as oil giant BP posted its highest annual profit in eight years amid mounting pressure on the sector as the cost-of-living crisis deepens.
The group revealed it swung to a mammoth 12.8billion US dollar (£9.5bn) underlying replacement cost profit – its preferred measure – for 2021 from losses of 5.7bn US dollars (£4.2bn) the previous year.
Shell was also in the firing line last week as it reported a hefty spike in profits (£15.25bn) on the same day as Ofgem announced a near £700 rise in the energy price cap.
Last week, Chancellor of the Exchequer Rishi Sunak announced measures to support struggling households in coping with the cost of living squeeze - including a £200 energy bill credit loan for every household in the UK and a non-repayable £150 council tax credit for those living in band A-D properties.
A discretionary fund will also be available for councils to support those who fall through the cracks of the criteria set - for example, non-council taxpayers like students, and low-income households living in higher-banded properties.
But supporters of the windfall tax believe some of the companies' profits should be reclaimed to help struggling households.
Rishi Sunak has so far rejected the proposals.
Greenpeace has branded the profits as a “slap in the face to the millions of people dreading their next energy bill”.
Here, we rank the biggest oil companies' after-tax profits for 2021
- ExxonMobil (owner of Esso) $23.04bn (£17.03bn)
- Shell - $20.63bn (£15.25bn)
- Chevron $15.689bn (£11.6bn)
- BP - $12.815bn (£9.47bn)
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