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Shell’s 2nd highest Q3 profit raises call for the windfall tax hike

Author : Saipriya Iyer | Published Date : 2022-10-28 

Shell’s 2nd highest Q3 profit raises call for the windfall tax hike

Shell PLC, the British oil and gas giant, has reportedly posted the second-largest quarterly profit in history, almost double its last figure.

It reported that its Q3 profits increased to $9.5 billion, up from $4.2 billion in the same quarter in 2021.

Calls for a higher tax on the earnings of energy companies to assist consumers with their bills were sparked by the increase.

Since the Russian invasion of Ukraine, the costs of oil and gas have increased. Hence, major energy firms have made enormous profits at a time when numerous governments are being forced to help citizens pay their energy bills.

Shell's profit reached a new high of $11.5 billion between April and June, but growth has since slowed as oil prices have declined from previous highs.

To earn $5.7 billion, former chancellor Rishi Sunak proposed a short-term windfall tax that he defined as a 25% Energy Profits Levy on companies' exceptional profits.

To ensure that energy corporations play their due part, however, Labour's shadow climate change secretary, Ed Miliband, claimed on Thursday that Shell's gains were proof that the UK required a higher windfall tax.

Miliband added that the present levy had flaws as taxpayer funds flow back into the pockets of oil and gas corporations owing to ridiculous tax exemptions.

The Energy Price Guarantee program of the government helps with electricity and gas costs. This limits the amount that businesses and consumers can be charged per unit of energy. Originally intended to endure for two years, the program will now only last through April, according to Chancellor Jeremy Hunt.

There are fears that once the support is withdrawn in April, typical home gas and electric expenses might reach £4,347 ($5029.57) per year.

According to Nathan Piper, an oil and gas researcher at Investec, oil prices have decreased globally, because of concerns about recession in numerous nations. Due to a shortage of gas storage capacity and unusually mild October weather, gas prices have also fallen significantly in the UK.

Source credit: https://www.bbc.com/news/business-63409687

About Author

Saipriya Iyer . .

Saipriya Iyer

Saipriya Iyer presently works as a content developer for fractovia.org. Having dabbled with the domain of content creation for nearly half a decade, she now boasts of an enviable portfolio, holding substantial experience in penning down pieces related to technology, finance, and a wide spectrum of other industry verticals. A qualified computer engineering graduate from the University of Pune, Saipriya can often be found leveraging her knowledge of software technology and electronics in her write-ups. She can be contacted at- [email protected] | https://twitter.com/saipriya_i

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