The United Kingdom-based oil and gas giant BP is facing criticism after reporting its profits more than doubled in the first quarter of the year, following a spike in oil prices since the Iran war began.
BP’s firstquarter update put underlying profit at $3.2 billion, explicitly linking this to higher oil prices, saying the profit “reflects exceptional oil trading”.
This is up from $1.38 billion a year earlier, and compares to $1.54 billion in the previous three months.
Oil prices have surged since the US-Israel war on Iran began on Feb 28, climbing more than 60 percent so far this year.
Brent crude neared $120 a barrel at one point and, though it has eased, it remains above $100 as peace talks stall and concerns grow over a looming global energy supply crunch.
Campaigners in the UK have said BP is profiting while households shoulder soaring gas pump prices and face another jump in bills when the energy price cap is revised on July 1.
Mike Childs, head of science, policy and research at Friends of the Earth, said that, just as in 2022 following the start of the RussiaUkraine conflict, fossil fuel giants profit when global instability drastically inflates fuel prices.
“But again, it’s ordinary people who pay the price when soaring energy prices threaten to plunge the UK into an even deeper cost-of-living crisis,” PA Media quoted him as saying.
Despite industry opposition to an energy profits levy, the End Fuel Poverty Coalition said windfall taxes on companies profiting from the Iranrelated energy crisis are essential.
The UK’s finance minister, Chancellor of the Exchequer Rachel Reeves, on Tuesday defended the government’s policy on energy companies’ profits.
Speaking in the House of Commons, she said: “In the first three months of this year, I think it’s important to know that revenues from fuel duty were no higher than they were just a year ago. And with regard to the profits of energy companies, that is exactly why we extended the energy profits levy, to make sure that windfall profits could be taxed appropriately.”
Reeves also said BP is among oil and gas companies that “play a really important part in our energy mix”.
Since taking over leadership of the company on April 1, BP’s new chief executive, Meg O’Neill, has said the company is safeguarding UK fuel supplies.
“The teams across BP are playing their part to keep oil, gas, and refined products flowing during an incredibly challenging time, focused on maintaining safe, reliable and cost-efficient operations,” she said. “We are working with customers and governments to get fuel where it’s needed, helping minimize disruption and the impact it can have on people’s lives.”
BP criticized over surging profits following Iran war
