After BP PLC (LSE:BP.) reported bumper profits of US$8.15bn in its third-quarter figures, up from US$3.3bn last year, environmental groups have called for a “bigger, bolder windfall tax” on oil and gas companies.
Friends of the Earth energy campaigner, Sana Yusuf, said: “The case for a bigger, bolder windfall tax is now over-whelming. This must address the ridiculous loophole that undermines the levy by enabling companies to pay the bare minimum if they invest in more planet-warming gas and oil projects.”
BP highlighted it expects to pay US$800mln in windfall tax this year, out of roughly US$2.5bn, for its British North Sea business.
Whilst the windfall tax on oil and gas producers sees them pay a total of 65% on profits, the Energy Profits Levy includes incentives that allow companies to avoid taxes by investing in UK-based projects.
Sana Yusuf added: “With the economy sinking, energy bills soaring and the climate crisis deepening, Rishi Sunak must surely act on the excessive profits that fossil fuel firms like BP are raking in.
“Some of the billions of pounds raised should be used to pay for a street-by-street, home insulation programme to cut energy bills and reduce emissions. As well as providing long-term financial relief to households – especially those most in need – this would boost energy security, cut our gas reliance and help the UK meet legally binding climate targets.”